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Texas Statutes (Last Updated: January 4, 2014) |
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BUSINESS ORGANIZATIONS CODE |
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Title 3. LIMITED LIABILITY COMPANIES |
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Chapter 101. LIMITED LIABILITY COMPANIES |
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Subchapter J. DERIVATIVE PROCEEDINGS |
Sec. 101.458. DISMISSAL OF DERIVATIVE PROCEEDING
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(a) A court shall dismiss a derivative proceeding on a motion by the limited liability company if the person or group of persons described by Section 101.454 determines in good faith, after conducting a reasonable inquiry and based on factors the person or group considers appropriate under the circumstances, that continuation of the derivative proceeding is not in the best interests of the limited liability company.
(b) In determining whether the requirements of Subsection (a) have been met, the burden of proof shall be on:
(1) the plaintiff member if:
(A) the majority of the governing authority consists of independent and disinterested persons at the time the determination is made;
(B) the determination is made by a panel of one or more independent and disinterested persons appointed under Section 101.454(a)(3); or
(C) the limited liability company presents prima facie evidence that demonstrates that the persons appointed under Section 101.454(a)(2) are independent and disinterested; or
(2) the limited liability company in any other circumstance.