Legislation Aims to Boost Texas as a Friendly Place to Incorporate and Settle Disputes

Business lawyers — dealmakers and litigators alike — have a lot to digest from legislation enacted during the 2025 session to make Texas an attractive state for incorporations and to expand the jurisdiction of the specialized business courts.

Senate Bill 29, which went into effect last month, is designed to make it more difficult for a small group of shareholders to challenge business decisions. The law allows a corporation to waive jury trials and state in its bylaws an ownership requirement for a shareholder to bring a derivative claim for alleged wrongdoing that has harmed the corporation.