Texas Business Organizations Code
§ 21.169 — TERMS AND CONDITIONS OF RIGHTS AND OPTIONS
BO § 21.169Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. D. SHARES, OPTIONS, AND CONVERTIBLE SECURITIES
Statute text
View on source(a)The terms and conditions of rights or options may include restrictions or conditions that:
(1)prohibit or limit the exercise, transfer, or receipt of the rights or options by certain persons or classes of persons, including:
(A)a person who beneficially owns or offers to acquire a specified number or percentage of the outstanding common shares, voting power, or other securities of the corporation; or
(B)a transferee of a person described by Paragraph (A); or
(2)invalidate or void the rights or options held by a person or transferee described by Subdivision (1).
(b)Rights or options created or issued before the effective date of this code that comply with this section and are not in conflict with other provisions of this code are ratified.
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Legislative history
Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 46, eff. January 1, 2006. Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 25, eff. September 1, 2023. Acts 2023, 88th Leg., R.S., Ch. 27 (S.B. 1514), Sec. 59(2), eff. September 1, 2023.