Texas Business Organizations Code

§ 21.756 — JUDICIAL PROCEEDING TO ENFORCE CLOSE CORPORATION PROVISION

BO § 21.756Title 2. CORPORATIONS · Ch. 21. FOR-PROFIT CORPORATIONS · Art. P. JUDICIAL PROCEEDINGS RELATING TO CLOSE CORPORATION

Statute text

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(a)In a judicial proceeding under this section, a court shall enforce a close corporation provision without regard to whether there is an adequate remedy at law.

(b)The court may enforce a close corporation provision by injunction, specific performance, or other relief the court determines to be fair and equitable under the circumstances, including:

(1)damages instead of or in addition to specific enforcement;

(2)the appointment of a provisional director or custodian;

(3)the appointment of a receiver for specific assets of the close corporation in accordance with Section 11.403;

(4)the appointment of a receiver to rehabilitate the close corporation in accordance with Section 11.404;

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Legislative history

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