Written Contract Required For Business Recruitment Or Development

Sec. 502.051. WRITTEN CONTRACT REQUIRED FOR BUSINESS RECRUITMENT OR DEVELOPMENT. (a) Except under a written contract approved by the corporation's board of directors, a corporation may not pay compensation, including a commission or fee, or another thing of value to a broker, agent, or other third party who: (1) is involved in business recruitment or development; and (2) is not an employee of the corporation. (b) A corporation that violates Subsection (a) is liable to this state for a civil penalty in an amount not to exceed $10,000. (c) The attorney general may bring an action to recover the civil penalty in a district court in Travis County or the county in which the violation occurred. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.