Texas § FI.61.003 - CONTROL

§ FI.61.003. CONTROL

CONTROL; SUBSIDIARY. (a) For the purposes of this subtitle, a person controls an association if the person has the power to direct or cause the direction of the management and policies of the association directly or indirectly. A person is considered to control an association if the person, individually or acting with others, directly or indirectly holds with the power to vote, owns, or controls, or holds irrevocable proxies representing, at least 25 percent of the voting rights of the association. (b) For the purposes of this subtitle, a company is a subsidiary of an association if the association or another company directly or indirectly controlled by the association controls the company. An association is considered to control a company if the association, directly or indirectly or acting with one or more other individuals or entities or through one or more subsidiaries: (1) holds with the power to vote, owns, or controls, or holds proxies representing, more than 25 percent of the voting shares of the company; (2) controls in any manner the election of a majority of the directors of the company; (3) is a general partner in the company; or (4) has contributed more than 25 percent of the equity capital of the company. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.