Does the conflict of interest law apply to directors of an Industrial Development Corporations?
Chapter 171 of the Local Government Code does not apply to the directors of an industrial development corporation. (69) A corporation created under the Development Corporation Act of 1979 “is not intended to be and shall not be a political subdivision or a political corporation within the meaning of the constitution and the laws of the state.” (70) However, the corporation “shall have and exercise all of the rights, powers, privileges, authority, and functions given by the general laws of this state to nonprofit corporations incorporated under the TEX.as Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s TEX.as Civil Statutes),” as amended, not inconsistent with article 5190.6. (71) The TEX.as Non-Profit Act prohibits loans being made by the corporation to its director. (72) “If a loan is made to a director, the directors who vote for making the loan and any officers participating in making the loan, shall be jointly and severally liable to the corporation for the amount o
