Texas Business Organizations Code
§ 21.721 — DELIVERY OF COPY OF SHAREHOLDERS' AGREEMENT TO TRANSFEREE
BO § 21.721Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. O. CLOSE CORPORATION
Statute text
View on source(a)Before the transfer of shares of a close corporation in which there is a shareholders' agreement, the transferor shall deliver a complete copy of the shareholders' agreement to the transferee.
(b)If the transferor fails to deliver a complete copy of the shareholders' agreement:
(1)the validity and enforceability of the shareholders' agreement against each shareholder of the corporation, including the transferee, is not affected;
(2)the right, title, or interest of the transferee in the transferred shares is not adversely affected; and
(3)the transferee is entitled to obtain on demand from the transferor or from the close corporation a complete copy of the shareholders' agreement at the transferor's expense.
Legislative history
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.