Decision of The Supreme Court of Texas No. 07-0581

05/22/2009

Today the Texas Supreme Court issued a ground-breaking ruling on shareholder derivative suits against Texas corporations. The decision, In re Schmitz, et al., represents the first ruling by the highest court in Texas on the strict statutory prerequisites for commencing shareholder derivative litigation established by the 1997 amendments to the Texas Business Corporations Act (and subsequently incorporated into the more recent Texas Business Organization Code). The Court’s decision represents a significant victory for businesses that elect to incorporate under the laws of Texas. Haynes and Boone, LLP represented the directors of Lancer Corporation, the victorious parties in this case.

Haynes and Boone Alert about this decision.

The PDF below contains the full text of the decision of The Supreme Court of Texas No. 07-0581, In Re Harold R. Schmitz, et al., Relators, given on May 22, 2009.

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