Beginning on January 1, 2010,all Texas entities that were formed prior to January 1,2006, and all foreign entities that registered to transact business in Texas prior to January 1, 2006, will automatically become subject to the Texas Business Organizations Code (“TBOC”). This change may require updating certain governing documents with your business to ensure their compliance with the TBOC. It will also be important to revaluate the current business structure and operations of your business to confirm consistency with both the TBOC and the governing documents. If your entity will be affected by the change, you should review your governing documents and consult with legal counsel to update them accordingly.
By Michael S. Byrd and Bradford E. Adatto