Texas Local Government Code 505.052 – Restriction On Board Membership
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(a) Each director of a Type B corporation authorized to be created by a municipality with a population of 20,000 or more must be a resident of the municipality.
(b) Each director of a Type B corporation authorized to be created by a municipality with a population of less than 20,000 must:
(1) be a resident of the municipality;
(2) be a resident of the county in which the major part of the area of the municipality is located; or
(3) reside:
(A) within 10 miles of the municipality’s boundaries; and
(B) in a county bordering the county in which most of the area of the municipality is located.
Terms Used In Texas Local Government Code 505.052
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Municipality: means a general-law municipality, home-rule municipality, or special-law municipality. See Texas Local Government Code 1.005
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Population: means the population shown by the most recent federal decennial census. See Texas Government Code 311.005
(c) Three directors of a Type B corporation must be persons who are not employees, officers, or members of the governing body of the authorizing municipality.
(d) Notwithstanding Subsections (a)-(c), if a municipality terminates a Type A corporation’s existence and authorizes the creation of a Type B corporation, a person serving as a director of the Type A corporation at the time of termination may serve on the board of directors of the Type B corporation.