🔴Relating to business entities

🔴 SB 29: Corporate Power Expansion and Shareholder Limits

What it says it does:
SB 29 claims to modernize Texas corporate law and make the state more competitive with Delaware and Nevada for business incorporation. Supporters say it will attract companies, reduce lawsuits, and help Texas grow as a national business center.

What it actually changes:
It rewrites major parts of the Texas Business Organizations Code to give corporate boards more control and reduce shareholder oversight. The bill lets companies remove jury trials in internal disputes, limits what records shareholders can access, and raises ownership thresholds needed to sue for misconduct.

Who is pushing for it:
Supporters in the files include Texans for Lawsuit Reform, the Texas Association of Business, the Texas Business Law Foundation, Nasdaq, AT&T, Archer Aviation, and the Texas Stock Exchange project.

Who benefits:
Large corporations, executives, and board members gain legal protections and fewer risks of shareholder lawsuits. The Texas Stock Exchange benefits from being newly defined as a “national exchange” under state law, giving it a competitive edge.

Who gets left out or exposed:
Small shareholders, employees with stock options, and retirees with pension investments lose access to internal records and lose the right to jury trials in disputes. Everyday Texans who rely on transparency and fair dealing have fewer ways to hold corporations accountable.

Why this matters long term:
SB 29 locks in corporate-friendly rules that concentrate power in boardrooms and business courts. It replaces public oversight with private control. Once these protections are in place, they will be difficult to undo even if future Legislatures want to restore accountability.

What to watch next:
Future sessions may expand business court authority and copy this model into other areas of law. Texans should watch for similar efforts to restrict jury trials, weaken transparency, or expand immunity for executives and agencies.

Bottom line:
SB 29 makes Texas a friendlier home for big corporations, but it weakens the rights of shareholders and limits the public’s ability to challenge abuse or misconduct. Texans who value fairness and accountability should pay close attention to how this new system operates.

#SB29 #TexasPolicy #CorporatePower #ShareholderRights #StayInformed