September 1, 2021
Corporate Compliance
Authority for Emergency Action
Effective September 1, SB 1203 revises the Business Organizations Code to allow a domestic entity’s governing authority to take action during an emergency without meeting qualifications of the entity’s governing documents or code that aren’t within the emergency period.
"(B) in the case of a nonprofit corporation, a person who has membership rights in the nonprofit corporation under its governing documents; (C) in the case of a cooperative association, a member of a nonshare or share association; (D) in the case of a nonprofit association, a person who has membership rights in the nonprofit association under its governing documents; or (E) in the case of a professional association, a person who has membership rights in the professional association under its governing documents..."