Tex. Bus. Orgs. Code § 21.710 · Subchapter O. CLOSE CORPORATION
EFFECT OF TERMINATION OF CLOSE CORPORATION STATUS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A close corporation that terminates its status as a close corporation and becomes an ordinary corporation is subject to this chapter as if the corporation had not elected close corporation status under this subchapter.
(b) The effect of termination of close corporation status on a shareholders' agreement is governed by Section 21.724.
(c) When the termination of close corporation status takes effect, if the close corporation's business and affairs have been managed by an entity other than a board of directors as provided by Section 21.725, governance by a board of directors is instituted or reinstated:
(1) if provided by a shareholders' agreement, in the manner stated in the agreement or by the persons named in the agreement to serve as the interim board of directors; or
(2) if each party to a shareholders' agreement agrees to elect a board of directors at a shareholders' meeting.
Notes and commentary — not statutory text
History
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
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 e5f56dc5db9def8674bde579a66a47adc4e803d29abd4f4a1e383ed35775df75
- 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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