Texas Business Organizations Code

§ 21.714 — SHAREHOLDERS' AGREEMENT

BO § 21.714Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. O. CLOSE CORPORATION

Statute text

(a)The shareholders of a close corporation may enter into one or more shareholders' agreements.

(b)The business and affairs of a close corporation or the relationships among the shareholders that may be regulated by a shareholders' agreement include:

(1)the management of the business and affairs of the close corporation by its shareholders, with or without a board of directors;

(2)the management of the business and affairs of the close corporation wholly or partly by one or more of its shareholders or other persons;

(3)buy-sell, first option, first refusal, or similar arrangements with respect to the close corporation's shares or other securities, and restrictions on the transfer of the shares or other securities, including more restrictions than those permitted by Section 21.211;

(4)the declaration and payment of dividends or other distributions in amounts authorized by Subchapter G, regardless of whether the distribution is in proportion to ownership of shares;

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Legislative history

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.