(a) A court may enter a decree requiring winding up of a filing entity’s business and termination of the filing entity’s existence if, as the result of an action brought under Section 11.303 (“The attorney general shall file an action against a filing entity in the name of the state seeking termination of the entity’s existence if […]”), the court finds that one or more of the following problems exist:
[…]
(5) public interest requires winding up and termination of the filing entity because:
(A) the filing entity has been convicted of a felony or a high managerial agent of the filing entity has been convicted of a felony committed in the conduct of the filing entity’s affairs;
(B) the filing entity or high managerial agent has engaged in a persistent course of felonious conduct; and
“Filing entity” means “a domestic entity that is a corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust.”
“Winding up” means “the process of winding up the business and affairs of a domestic entity as a result of the occurrence of an event requiring winding up.”
All the legalese is saying is that if the AG sues to have a company dissolved and the court finds either that the company or a high-up at the company (in the course of their work at the company) keeps committing felonies, the court can, if deemed necessary to stop similar conduct in the future, require the company to wind up its affairs (i.e. get its shit in order) and then be terminated.
Texas Business Organizations Code, Title 1, Chapter 11, Subchapter G, Section 301 (“Involuntary winding up and termination of filing entity by court action”):
[…]
Sir, this is a Wendy’s…
JK, thanks for the legalese
Expanding a bit:
All the legalese is saying is that if the AG sues to have a company dissolved and the court finds either that the company or a high-up at the company (in the course of their work at the company) keeps committing felonies, the court can, if deemed necessary to stop similar conduct in the future, require the company to wind up its affairs (i.e. get its shit in order) and then be terminated.