Texas Business Organizations Code

§ 21.101 — SHAREHOLDERS' AGREEMENT

BO § 21.101Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. C. SHAREHOLDERS' AGREEMENTS

Statute text

(a)The shareholders of a corporation may enter into an agreement that:

(1)restricts the discretion or powers of the board of directors;

(2)eliminates the board of directors and authorizes the business and affairs of the corporation to be managed, wholly or partly, by one or more of its shareholders or other persons;

(3)establishes the individuals who shall serve as directors or officers of the corporation;

(4)determines the term of office, manner of selection or removal, or terms or conditions of employment of a director, officer, or other employee of the corporation, regardless of the length of employment;

(5)governs the authorization or making of distributions whether in proportion to ownership of shares, subject to Section 21.303;

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Legislative history

Acts 2013, 83rd Leg., R.S., Ch. 100 (S.B. 849), Sec. 3, eff. September 1, 2013.