Texas Business Organizations Code director-duty standard applicable to nonprofit corporations, including most Texas HOAs and condominium associations. Directors must discharge their duties in good faith, with ordinary care, and in a manner the director reasonably believes is in the best interest of the corporation. A director who meets these three standards is not liable for any action taken or omission made — establishing director liability requires proving a failure to satisfy at least one of the three. The Texas analog to Fla. Stat. §617.0830 and the corporate-governance backstop to TUCA §82.102 and TRPOPA §209.0051.
Legal references last verified May 19, 2026.
This content is educational and informational. It does not constitute legal advice.
Consult a licensed attorney in your state for legal guidance specific to your situation.