Foley Attorneys Featured in Texas Lawyer on New Corporate Law Reforms Aimed at Promoting Business Growth in Texas

On May 14, 2025, Texas Governor Greg Abbott signed Senate Bill 29 into law, a major legislative development aimed at enhancing the state’s corporate governance environment and positioning Texas as a leading destination for incorporation. The new law enables Texas corporations to limit shareholder derivative lawsuits, establish exclusive venues for internal corporate disputes, waive jury trials through bylaw provisions, and codifies the state’s business judgment rule. These changes are aimed at reducing litigation risk and providing companies greater control over internal corporate matters.

Foley partners Christopher Babcock and Christopher Converse, both based in Dallas, were quoted in Texas Lawyer’s article, “New Texas Law ‘Eliminates Rogue Shareholders,’ Abbott Says,” discussing the impact of the legislation and how it strengthens Texas’s appeal as a business-friendly jurisdiction.

“Ultimately, this bill is about empowering shareholders and their duly elected boards to be the corporate decision makers rather than third parties on the outside,” said Babcock.

Babcock explained that the law builds on other steps Texas has taken to make the state business-friendly, including the establishment of the Texas Stock Exchange and five business courts. “This makes Texas attractive as an entity for your initial formation, which again just helps to attract economic development and growth generally in Texas,” he said.

Converse added, “The Texas legislation is one more step in that Texas miracle.” He noted that the new law is already drumming up new business.

“The numbers are increasing—the trend of companies calling us and basically saying, ‘Tell me about this legislation, tell me about reincorporating,’” said Converse. “We’re having many more discussions this week than we did three weeks ago.”

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