Texas is positioning itself as a favorable state for corporations by introducing new legislation aimed at reducing shareholder lawsuits and increasing barriers for shareholder resolutions. Senate Bill 29 would provide greater legal protection to boards of directors, making it harder for investors to sue them. Meanwhile, Senate Bill 1057 would raise the requirements for shareholders to submit proposals at annual meetings. These bills could impact major Texas-based companies like Tesla and Southwest Airlines, as well as those headquartered in Texas such as AT&T and Waste Management. Both measures await Governor Greg Abbott’s signature, who has shown support for SB 29. Critics argue that these changes could undermine minority shareholder rights, potentially turning Texas into a haven for corporate executives with significant ownership stakes. Proponents claim the bills are balanced and aim to protect businesses from politicized attacks. If enacted, these laws could reshape corporate governance in Texas.
— new from Business Insider
