Yes, there are director actions you can limit right in your Texas formation certificate for your corporation. However, there are also actions that you simply cannot exculpate.
Some companies in the state of Texas are guilty of employing unethical business practices in order to manipulate consumers into buying their products or services. According to the Federal Trade Commission Act, these actions can be classified as either deceptive or unfair, and laws have been put into place in order to protect consumers. Deceptive trade practices include a clear attempt to trick consumers, whether by false statements, omission of essential facts or propagandistic attacks on competitors. Unfair practices, on the other hand, can include actions which result in significant harm to the consumers.
Stolen property is typically an obvious crime to identify. However, intellectual property can be a bit more complicated to recognize and enforce in Texas. According to Cornell Law School, intellectual property encompasses the intangible products of the human mind, including the communication of ideas, inventions, concepts and artistic creations. In most cases, this type of property is protected by copyrights, trademarks, patents and, less commonly, trade secrets.
Many companies in Texas rely upon external sources to provide counsel and help grow their business. These people, called fiduciaries, have a duty to the company to act in its best interests and assist in its success as much as possible. According to Cornell Law School, there are several areas in which a fiduciary is accountable to its beneficiary (the company whose well-being is entrusted to him or her). One duty is confidentiality. The fiduciary should be reasonably expected not to reveal sensitive information publicly. On the other hand, the duty of disclosure requires that the fiduciary share pertinent information with interested parties when appropriate, rather than attempting to hide certain facets of the company. Prudence and good faith dictate that the fiduciary act with the necessary attention to detail and upstanding ethics to promote the company's overall healthy and growth.
Price fixing agreements are generally illegal as violating anti-trust laws in Texas and elsewhere in the United States. These illegal arrangements occur when two or more companies collude to increase or decrease product prices to bring about a particular effect. It can also occur by manipulating prices to be unnaturally stable when they should otherwise fluctuate because of other influences.
For business owners in Austin, knowing the proper methods for avoiding contracts disputes is an ongoing concern. A dispute can serve to derail a business’s chance at success, and even result in a costly lawsuit under the right circumstances. Fortunately, there are ways you can prevent contract disputes from occurring, provided you have the right information.