Two Texas Legislators File Groundbreaking Bill to Transform Texas Corporate Law

SB 29 and HB 15 Will Cement Texas as The Leading State for American Business

AUSTIN, Texas, March 4, 2025 /PRNewswire/ -- Texas state Sen. Bryan Hughes (R-Mineola) and state Rep. Morgan Meyer (R-University Park) filed companion landmark bills on February 27, 2025, promising to reshape the American business landscape. Business leaders across the state are applauding this legislation, including Texans for Lawsuit Reform (TLR), the Texas Stock Exchange (TXSE) and the Alliance for Corporate Excellence.

In announcing the filing of Senate Bill 29, Sen. Hughes stated: "Building on the strength of Texas' business courts, SB 29 makes sure that business decisions are made by Texas corporations, through their shareholders and elected boards, and not third-party activists. With SB 29, Texas shows that it is fast becoming the leading state for business incorporations." Sen. Hughes continued, "I thank Lt. Governor Dan Patrick for his leadership in this important step in making Texas the unrivaled leader in business, economic development and jobs." 

In announcing the filing of House Bill 15, Chairman Meyer stated: "I am offering this legislation to build on the foundation of the Texas Business Court and provide a legal framework that matches our state's commitment to business excellence. I want to thank Speaker Burrows for his leadership in positioning Texas for economic growth and innovation by becoming the principal state for corporate organization and operations."

As pointed out by Sen. Hughes in his announcement, American companies must choose a state for their "legal home" in addition to their business and operational headquarters. This legislation will establish Texas as a meaningful alternative to legal incorporation in Delaware, whose law has ceased to be predictable and clear in light of growing activism by the Delaware courts and legal community.  Instead, these bills will ensure that Texas's legal framework for corporations will be guided by common sense principles that support business excellence, innovation, and growth.

"This critical legislation will further solidify Texas as the nation's leader in business and economic development — and will draw even more companies to Texas, empowering them to create jobs and continue the Texas Miracle," said Dick Weekley, Chairman of TLR. "TLR applauds Senator Hughes and Chairman Meyer for their strong leadership and for their commitment to business excellence in the state."

TXSE Chairman and CEO James H. Lee added, "The Texas Stock Exchange is committed to working with businesses to align with their interests and fuel the Texas economic juggernaut. SB 29 and HB 15 will cement Texas's position as the most pro-business state in America."

The Alliance for Corporate Excellence, a coalition of business leaders dedicated to advancing pro-business policies in Texas, also welcomes the filing of this legislation, and believes it is necessary to protect Texas business from attack from activist groups without a meaningful stake in the corporate enterprise.

Texans for Lawsuit Reform's mission is to foster freedom, innovation and job creation by advocating for a fair, efficient and predictable civil justice system staffed by competent and independent judges who apply the constitution and laws as written.

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The Texas Stock Exchange (TXSE) will focus on enabling U.S. and global companies to access U.S. equity capital markets and aims to provide a venue to list and trade public companies and the growing universe of exchange-traded products. Subject to approval by the U.S. Securities and Exchange Commission, TXSE will be a fully electronic, national securities exchange.

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The Alliance for Corporate Excellence exists because we believe that corporate decision-making should be made by shareholders and by their elected directors and agents, and not by activists who are not invested in long-term corporate success.  Acting on these beliefs, the Alliance is supporting various changes to the Texas Business Organizations Code that, we believe, will make Texas a superior jurisdiction not only for incorporations but simply a place to do business.  These changes will provide a counterbalance to states that are moving away from market-driven, business friendly and common-sense jurisprudence towards judicial control through activism and decision-making uncertainty.

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SOURCE The Alliance for Corporate Excellence