Texas Business Organizations Code
§ 21.719 — VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT
BO § 21.719Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. O. CLOSE CORPORATION
Statute text
View on source(a)A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:
(1)the elimination of a board of directors;
(2)any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and
(3)that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.
(b)A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.
Legislative history
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.