Tex. Bus. Orgs. Code § 21.719 · Subchapter O. CLOSE CORPORATION
VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:
(1) the elimination of a board of directors;
(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and
(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.
(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.
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 6f6834c3454c17bf36685960989dd3aa52bc4cf99f53a5ba4208856d2831c9fb
- 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
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.