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Texas Business Organizations Code

§ 21.109 — AGREEMENT NOT EFFECTIVE

BO § 21.109Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. C. SHAREHOLDERS' AGREEMENTS

Statute text

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(a)A shareholders' agreement authorized by this subchapter ceases to be effective when shares of the corporation are:
(1)listed on a national securities exchange; or
(2)regularly traded in a market maintained by one or more members of a national or affiliated securities association.
(b)If a corporation does not have a board of directors and an agreement of the shareholders of the corporation entered into under this subchapter ceases to be effective, a board of directors shall be instituted or reinstated to govern the corporation in the manner provided by Section 21.710(c).
(c)If a shareholders' agreement that ceases to be effective is contained in or referred to by the certificate of formation or bylaws of a corporation, the board of directors of the corporation may adopt an amendment to the certificate of formation or bylaws, without shareholder action, to delete the agreement and any references to the agreement. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by:

Legislative history

Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748), Sec. 21, eff. September 1, 2011.

Source: Texas Business Organizations Code § 21.109 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.