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Texas Business Organizations Code

§ 21.720 — PERSONS BOUND BY SHAREHOLDERS' AGREEMENT

BO § 21.720Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. O. CLOSE CORPORATION

Statute text

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(a)A shareholders' agreement executed in accordance with Section 21.715 is:
(1)considered to be an agreement among all of the shareholders of the close corporation; and
(2)binding on and enforceable against each shareholder of the close corporation, regardless of whether:
(A)a particular shareholder acquired shares in the close corporation by purchase, gift, bequest, or otherwise; or
(B)the shareholder had actual knowledge of the existence of the shareholders' agreement at the time of acquiring shares.
(b)A transferee or assignee of shares of a close corporation in which there is a shareholders' agreement is bound by the agreement for all purposes, regardless of whether the transferee or assignee executed or was aware of the agreement.

Legislative history

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

Source: Texas Business Organizations Code § 21.720 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.