Tex. Bus. Orgs. Code § 21.169 · Subchapter D. SHARES, OPTIONS, AND CONVERTIBLE SECURITIES
TERMS AND CONDITIONS OF RIGHTS AND OPTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The terms and conditions of rights or options may include restrictions or conditions that:
(1) prohibit or limit the exercise, transfer, or receipt of the rights or options by certain persons or classes of persons, including:
(A) a person who beneficially owns or offers to acquire a specified number or percentage of the outstanding common shares, voting power, or other securities of the corporation; or
(B) a transferee of a person described by Paragraph (A); or
(2) invalidate or void the rights or options held by a person or transferee described by Subdivision (1).
(b) Rights or options created or issued before the effective date of this code that comply with this section and are not in conflict with other provisions of this code are ratified.
(c) Except as provided by Section 21.168, unless otherwise provided under the terms of rights or options or the agreement or plan under which the rights or options are issued, the authority to grant, amend, redeem, extend, or replace the rights or options on behalf of a corporation is vested exclusively in the board of directors of the corporation. A bylaw may not require the board to grant, amend, redeem, extend, or replace the rights or options.
(d) Repealed by Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 59(2), eff. September 1, 2023.
(e) Repealed by Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 59(2), eff. September 1, 2023.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 46, eff. January 1, 2006.
Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 25, eff. September 1, 2023.
Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 59(2), eff. September 1, 2023.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm
- Text hash
- sha256 52c05cbff00737d9a0974008307ea0cfb226dbe299eb74872b2aedbaa06a6ba9
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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Business Organizations Code
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