HB988 - Relating to the duty of the board of directors of a corporation to maximize the value of the corporation's shares.

      By: Harrison H.B. No. 988       A BILL TO BE ENTITLED   AN ACT   relating to the duty of the board of directors of a corporation to   maximize the value of the corporation's shares.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 21.401, Business Organizations Code, is   amended by adding Subsection (f) to read as follows:           (f)     Notwithstanding any other law, in discharging the   duties of a director, the director shall act to maximize the value   of the corporation's shares. It is considered a breach of the   director's fiduciary duty if the director prioritizes another   consideration over the maximization of the value of the   corporation's shares.          SECTION 2.  This Act applies only to an action taken by the   board of directors of a corporation on or after the effective date   of this Act.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.