Tex. Codes » Business Organizations Code · TITLE 2. CORPORATIONS · CHAPTER 21. FOR-PROFIT CORPORATIONS
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Tex. Bus. Orgs. Code § 21.560 (2026)

Discontinuance Or Settlement

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Sec. 21.560. DISCONTINUANCE OR SETTLEMENT. (a) A derivative proceeding may not be discontinued or settled without court approval.

(b) The court shall direct that notice be given to the affected shareholders if the court determines that a proposed discontinuance or settlement may substantially affect the interests of other shareholders.

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

Notes of Decisions
Cited in 2 cases, 2014–2014 · leading case: Lapiner v. Maimon, 429 S.W.3d 816 (Tex. App.—Houston [14th Dist.] 2014).
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Lapiner v. Maimon, 429 S.W.3d 816 (Tex. App.—Houston [14th Dist.] 2014). · cites it 2× “Tex. Bus. Orgs.Code Ann. § 21.560. It also gives the trial court discretion to determine the affected shareholders who should be notified of the proposed settlement and invited to file an objection to that settlement if they believe it is not fair.”
Yuval Lapiner v. Jackob Maimon, Max Pridgeon & Michelle R. Cinnamon FloresHaim Tsuff & Goodrich Global Ltd., Isramco, Inc., Jeffrey Goldstein, & Theodore Steinberg, No. 14-12-00158-CV (Tex. App.—Houston [14th Dist.] Apr. 22, 2014). · cites it 2× “” Tex. Bus. Orgs. Code Ann. § 21.560 (b). By using the terms “affected” and “other” shareholders, rather than limiting notice to the group of shareholders who could maintain a derivative proceeding themselves under section 21.”
Tex. Bus. Orgs. Code § 21.560(b): 1 case
Lapiner v. Maimon, 429 S.W.3d 816 (Tex. App.—Houston [14th Dist.] 2014). “Tex. Bus. Orgs.Code Ann. § 21.560. It also gives the trial court discretion to determine the affected shareholders who should be notified of the proposed settlement and invited to file an objection to that settlement if they believe it is not fair.”
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