Tex. Bus. Orgs. Code § 21.720 · Subchapter O. CLOSE CORPORATION
PERSONS BOUND BY SHAREHOLDERS' AGREEMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A shareholders' agreement executed in accordance with Section 21.715 is:
(1) considered to be an agreement among all of the shareholders of the close corporation; and
(2) binding on and enforceable against each shareholder of the close corporation, regardless of whether:
(A) a particular shareholder acquired shares in the close corporation by purchase, gift, bequest, or otherwise; or
(B) the shareholder had actual knowledge of the existence of the shareholders' agreement at the time of acquiring shares.
(b) A transferee or assignee of shares of a close corporation in which there is a shareholders' agreement is bound by the agreement for all purposes, regardless of whether the transferee or assignee executed or was aware of the agreement.
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 c8ebc39c819dec58634cf62fc3134bb4bb80104bb77ba78fcbc7accea31b6fcd
- 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
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.