Sec. 9.051. TRANSACTING BUSINESS OR MAINTAINING COURT PROCEEDING WITHOUT REGISTRATION. (a) On application by the attorney general, a court may enjoin a foreign filing entity or the entity's agent from transacting business in this state if:
(1) the entity is not registered in this state; or
(2) the entity's registration is obtained on the basis of a false or misleading representation.
(b) A foreign filing entity or the entity's legal representative may not maintain an action, suit, or proceeding in a court of this state, brought either directly by the entity or in the form of a derivative action in the entity's name, on a cause of action that arises out of the transaction of business in this state unless the foreign filing entity is registered in accordance with this chapter. This subsection does not affect the rights of an assignee of the foreign filing entity as:
(1) the holder in due course of a negotiable instrument; or
(2) the bona fide purchaser for value of a warehouse receipt, security, or other instrument made negotiable by law.
(c) The failure of a foreign filing entity to register does not:
(1) affect the validity of any contract or act of the foreign filing entity;
(2) prevent the entity from defending an action, suit, or proceeding in a court in this state; or
(3) except as provided by Subsection (d), cause any owner, member, or managerial official of the foreign filing entity to become liable for the debts, obligations, or liabilities of the foreign filing entity.
(d) Subsection (c)(3) does not apply to a general partner of a foreign limited partnership.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Notes of Decisions
Duradril, L.L.C. v. Dynomax Drilling Tools, Inc., 516 S.W.3d 147 (Tex. App. 2017).
“See Tex. Bus. Org. Code Ann. § 9.051 (b) (West 2012) (“A foreign filing entity or the entity’s legal representative may not maintain an action, suit, or proceeding in a court of this state, brought either directly by the entity or in the form of a derivative action in the…”
Harmon v. Lighthouse Capital Funding, Inc. (In Re Harmon), 444 B.R. 696 (Bankr. S.D. Tex. 2011).
· cites it 3× “may not maintain an action, suit, or proceeding in a court of this state ... on a cause of action that arises out of the transaction of business in this state unless the foreign filing entity is registered in accordance with this chapter.”
Anglo-Dutch Petroleum Int'l, Inc & Anglo-Dutch (Tenge) LLC v. Case Funding Network, L.P., 3K P'ship, Prosperity Settlement Funding, Inc., Lawsuit Fin., LLC, Future Settlement Funding of SC, Inc., Robert M. Press, New Amsterdam Capital Partners, Inc., Ryan Brooks, Joseph Dinardo, Joseph Giurintano, Plaintif (Tex. App. 2014).
· cites it 2× “”[9] Accordingly, Texas law permits Prosperity and Anzar to bring 6 TEX. BUS. ORGS. CODE ANN. § 9.051(b) (Vernon 2011).”
— Tex. Bus. Orgs. Code § 9.051(b) — 10 cases
Harmon v. Lighthouse Capital Funding, Inc. (In Re Harmon), 444 B.R. 696 (Bankr. S.D. Tex. 2011).
“may not maintain an action, suit, or proceeding in a court of this state ... on a cause of action that arises out of the transaction of business in this state unless the foreign filing entity is registered in accordance with this chapter.”
Anglo-Dutch Petroleum Int'l, Inc & Anglo-Dutch (Tenge) LLC v. Case Funding Network, L.P., 3K P'ship, Prosperity Settlement Funding, Inc., Lawsuit Fin., LLC, Future Settlement Funding of SC, Inc., Robert M. Press, New Amsterdam Capital Partners, Inc., Ryan Brooks, Joseph Dinardo, Joseph Giurintano, Plaintif (Tex. App. 2014).
“”[9] Accordingly, Texas law permits Prosperity and Anzar to bring 6 TEX. BUS. ORGS. CODE ANN. § 9.051(b) (Vernon 2011).”
— Tex. Bus. Orgs. Code § 9.051(c) — 1 case
— Tex. Bus. Orgs. Code § 9.051(c)(2) — 2 cases
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