Bill S.B. 29 strengthens corporate governance in Texas

The Texas Senate has approved S.B. 29, a bill aimed at improving corporate governance standards and enhancing the state’s appeal as a business jurisdiction.

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The bill codifies the business judgment rule, providing company directors and officers with additional protection when making management decisions in good faith and in the company’s best interest.

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It also limits the ability of shareholders holding less than 3% of a company’s stock to file derivative lawsuits — a measure designed to reduce the risk of litigation abuse and strengthen the stability of corporate structures.

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Passage of S.B. 29 is seen as a step that bolsters Texas’s competitive position for corporate registrations against other U.S. jurisdictions, including Delaware and Nevada.

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By contacting us, you will receive:

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• Consulting on business registration and operations in Texas, including analysis of the state’s corporate and tax advantages.
• Advice on tax planning and compliance with federal and state legislation.
• Support in corporate governance, including development of internal policies and procedures in line with Texas regulations.
• Assessment of the state’s investment climate and identification of promising areas for growth and investment.
• End-to-end support for launching a business in Texas, including document preparation, government interactions, and setting up a company’s legal function.

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