Tex. Bus. Orgs. Code § 21.707 · Subchapter O. CLOSE CORPORATION
EXISTING CLOSE CORPORATION.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) This section applies to an existing corporation that elected to become a close corporation before the mandatory application date of this code and has not terminated that status.
(b) A close corporation existing before the mandatory application date of this code is considered to be a close corporation under this code.
(c) A provision in the articles of incorporation of a close corporation authorized under former law is valid and enforceable if the corporation's status as a close corporation has not been terminated.
(d) An agreement among the shareholders of a close corporation in conformance with former law and Sections 21.714-21.725 before the mandatory application date of this code is considered to be a shareholders' agreement.
(e) A certificate representing the shares issued or delivered by the close corporation after the mandatory application date of this code, whether in connection with the original issue of shares or a transfer of shares, must conform with Section 21.732.
(f) In this section, "mandatory application date" has the meaning assigned by Section 401.001.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 86, eff. September 1, 2007.
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 57614fa45a447d57be394bec0d5530622dc8035f3d9e7d7f075af096428f19cc
- 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
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business Organizations Code
- Tex. Bus. Orgs. Code § 21.714SHAREHOLDERS' AGREEMENT.Printed as Sections 21.714-21.725
- Tex. Bus. Orgs. Code § 21.725CONSEQUENCES OF MANAGEMENT BY PERSONS OTHER THAN BOARD OF DIRECTORS.Printed as Sections 21.714-21.725
- Tex. Bus. Orgs. Code § 21.732CLOSE CORPORATION SHARE CERTIFICATES.Printed as Section 21.732
- Tex. Bus. Orgs. Code § 401.001DEFINITIONS.Printed as Section 401.001
Cited by 1 provision
Provisions in this library whose text cites Tex. Bus. Orgs. Code § 21.707. Each shows the citation as that text prints it.
Business Organizations Code
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