1. (a) A court may revoke the registration of a foreign filing entity if, as a result of an action brought under Section 9.153, the court finds that one or more of the following problems exist:

   1. (1) the entity did not comply with a condition precedent to the issuance of the entity's registration or an amendment to the registration;
   2. (2) the entity's registration or any amendment to the entity's registration was fraudulently filed;
   3. (3) a misrepresentation of a material matter was made in an application, report, affidavit, or other document the entity submitted under this code;
   4. (4) the entity has continued to transact business beyond the scope of the purpose or purposes expressed in the entity's registration; or

   5. (5) public interest requires revocation because:

      1. (A) the entity has been convicted of a felony or a high managerial agent of the entity has been convicted of a felony committed in the conduct of the entity's affairs;
      2. (B) the entity or the high managerial agent has engaged in a persistent course of felonious conduct; and
      3. (C) revocation is necessary to prevent future felonious conduct of the same character.
2. (b) Sections 9.152-9.157 do not apply to Subsection (a)(5).

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.