Tex. Codes » Business Organizations Code · TITLE 2. CORPORATIONS · CHAPTER 21. FOR-PROFIT CORPORATIONS
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Tex. Bus. Orgs. Code § 21.551 (2026)

Definitions

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Sec. 21.551. DEFINITIONS. In this subchapter:

(1) "Derivative proceeding" means a civil suit in the right of a domestic corporation or, to the extent provided by Section 21.562, in the right of a foreign corporation.

(2) "Shareholder" includes:

(A) a shareholder as defined by Section 1.002;

(B) a beneficial owner whose shares are held in a voting trust or by a nominee on the beneficial owner's behalf; or

(C) two or more shareholders acting in concert under an informal or formal agreement or understanding with respect to a derivative proceeding.

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.

Amended by:

Acts 2019, 86th Leg., R.S., Ch. 899 (H.B. 3603), Sec. 1, eff. September 1, 2019.

Acts 2021, 87th Leg., R.S., Ch. 39 (S.B. 1203), Sec. 23, eff. September 1, 2021.

Acts 2025, 89th Leg., R.S., Ch. 21 (S.B. 29), Sec. 12, eff. May 14, 2025.

Notes of Decisions
Cited in 10 cases (3 in the last 5 years), 2011–2025 · leading case: Webre v. Sneed, 358 S.W.3d 322 (Tex. App.—Houston [1st Dist.] 2011).
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Webre v. Sneed, 358 S.W.3d 322 (Tex. App.—Houston [1st Dist.] 2011). · cites it 2× “Laws 267 , 448-51, 597 (current version at Tex. Bus. Orgs.Code Ann. §§ 21.551 — .563 (Vernon 2007)).”
Edward Roels v. Lee Valkenaar, No. 03-19-00502-CV, 2020 WL 4930041 (Tex. App.—Austin Aug. 20, 2020). · cites it 2× “003 (outlining TCPA motion procedure);1 Tex. Bus. Orgs. Code §§ 21.551–.563 (outlining shareholder-derivative proceedings).”
Peter D. Tran v. Aloysius Duy-Hung Hoang, No. 01-14-00973-CV (Tex. App.—Houston [1st Dist.] Nov. 10, 2015). · cites it 2× “See TEX. BUS. ORGS. CODE ANN. §§ 21.551 – 21.”
Sitina Abdu v. Mesay Hailu, No. 05-17-01261-CV (Tex. App.—Dallas Dec. 21, 2018). “See TEX. BUS. ORGS. CODE ANN. §§ 21.551, 21.563.”
KIPP, Inc. v. Grant Me the Wisdom Found., Inc., No. 14-20-00727-CV (June 2, 2022). “(citing Tex. Bus. Orgs. Code §§ 21.551–21.563). Section 21.”
Novedea Sys., Inc v. Colaberry, Inc, No. 6:20-cv-00180, 2021 WL 6618488 (E.D. Tex. Aug. 13, 2021). “2015); see also TEX. BUS. ORGS. CODE §§ 21.551–.563.2 Katamaraja argues that Dasari never made such a pre-suit demand, which is fatal to Novedea’s claims.”
Harrison v. Aztec Well Servicing Co, No. 1:20-cv-00038 (N.D. Tex. Sept. 14, 2020). “3d Corporations § 235 (2020); see also Tex. Bus. Org. Code § 21.551 (defining a “derivative proceeding” as “a civil suit in the right of a domestic corporation”).”
Clinton W. ("buddy") Pike, Sr. v. Texas Emc Mgmt., LLC, 610 S.W.3d 763 (Tex. 2020). “51 Compare TEX. BUS. ORGS. CODE §§ 21.551–.563 (derivative action provisions for corporations), with id.”
Neil Collins v. Robert Scott Hetzler, No. 02-24-00078-CV (Tex. App.—Fort Worth Mar. 27, 2025). “2014); see Tex. Bus. Orgs. Code Ann. § 21.551 (1) (defining a shareholder derivative proceeding as a civil suit brought in the right of the corporation).”
Barbara Regina Schlein v. Anthony Griffin, No. 01-14-00799-CV (Tex. App.—Houston [1st Dist.] May 4, 2015). “. . . . . . . . . . . . . . . . . . . . .”
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