{"data":{"id":"us-tx/tex.-insurance-code-823.402","jurisdiction":"us-tx","citation":"Tex. Insurance Code § 823.402","heading":"PROHIBITION ON VOTING CERTAIN SECURITIES.","body":"(a) A security that is the subject of an agreement or arrangement regarding an acquisition or that is acquired or to be acquired in violation of this chapter or a rule or order under this chapter may not be voted at a shareholders' meeting or counted for quorum purposes. An action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the security was not outstanding.\n(b) An action taken at a shareholders' meeting is not invalidated by the voting of a security to which Subsection (a) applies unless:\n(1) the action would materially affect control of the insurer; or\n(2) a court of this state invalidates the action.\nAdded by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.","path":["INSURANCE CODE","TITLE 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES","SUBTITLE B. ORGANIZATION OF REGULATED ENTITIES","CHAPTER 823. INSURANCE HOLDING COMPANY SYSTEMS","SUBCHAPTER I. LIMITATIONS RELATING TO CONTROLLED INSURERS"],"source_url":"https://statutes.capitol.texas.gov/Docs/IN/htm/IN.823.htm#823.402","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:21Z","sha256":"0d674483ed511a16bf5c7cee015c846870f5d4eca4682e1efdd75a5af22b778f","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-insurance-code-823.401","next":"us-tx/tex.-insurance-code-823.403"},"notice":"GroundRules: Original legal text. Not legal advice."}