Texas Business Organizations Code
§ 21.107 — LIABILITY OF SHAREHOLDER
BO § 21.107Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. C. SHAREHOLDERS' AGREEMENTS
Statute text
View on sourceThe existence of or a performance under a shareholders' agreement authorized by this subchapter is not a ground for imposing personal liability on a shareholder for an act or obligation of the corporation by disregarding the separate existence of the corporation or otherwise, even if the agreement or a performance under the agreement:
(1)treats the corporation as if the corporation were a partnership or in a manner that otherwise is appropriate only among partners;
(2)results in the corporation being considered a partnership for purposes of taxation; or
(3)results in failure to observe the corporate formalities otherwise applicable to the matters governed by the agreement.
Legislative history
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.