Texas Codes

Tex. Bus. Orgs. Code § 21.551 (2026)

Definitions

✓ current as of May 2026

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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. 2011).

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Webre v. Sneed, 358 S.W.3d 322 (Tex. App. 2011). · cites it 2× “Laws 267 , 448-51, 597 (current version at Tex. Bus. Orgs.Code Ann. §§ 21.551 — .563 (Vernon 2007)).”

Edward Roels, Bruce Barshop, Julie Mak, & Jim Pabst// Lee Valkenaar, Jack Long, Roxann Chargois, Jarred Maxwell & Aqushen, LLC v. Lee Valkenaar, Jarred Maxwell, Roxann Chargois, Jack Long, & Aqushen, LLC// Edward Roels, Bruce Barshop, Julie Mak, & Jim Pabst (Tex. App. 2020). · cites it 2× “003 (outlining TCPA motion procedure);1 Tex. Bus. Orgs. Code §§ 21.551–.563 (outlining shareholder-derivative proceedings).”

Peter D. Tran, Nam Van Nguyen, the Kim Hoang & Tuyen Ngoc Bui, on Behalf of the Vietnamese Cmty. of Houston & Vicinity, Inc. a Non-Profit Corp. v. Aloysius Duy-Hung Hoang, Teresa Ngoc-Bich Hoang, Cavatina Truong, Skybird Nguyen & Hoc Nhu Phan (Tex. App. 2015). · cites it 2× “See TEX. BUS. ORGS. CODE ANN. §§ 21.551 – 21.”

Sitina Abdu v. Mesay Hailu & Elyas Gebresilassie (Tex. App. 2018). “See TEX. BUS. ORGS. CODE ANN. §§ 21.551, 21.563.”

KIPP, Inc., St. Luke's United Methodist Church of Houston, Legacy Cmty. Health Servs., YMCA of Greater Houston's Julius William \Bill\" Boyar (2022). “(citing Tex. Bus. Orgs. Code §§ 21.551–21.563). Section 21.”

Novedea Sys., Inc v. Colaberry, Inc (E.D. Tex. 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 (N.D. Tex. 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 (2020). “51 Compare TEX. BUS. ORGS. CODE §§ 21.551–.563 (derivative action provisions for corporations), with id.”

Neil Collins, Individually & Derivatively on Behalf of Contemporary Rsch. Corp. v. Robert Scott Hetzler, Contemporary Rsch. Corp., CR Assembly Corp., CR Source Corp., & Marianne Michelle Zaccaro A/K/A Marianne Michelle Hetzler (Tex. App. 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 (Tex. App. 2015). “. . . . . . . . . . . . . . . . . . . . .”

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