Texas Code § 21.720

PERSONS BOUND BY SHAREHOLDERS' AGREEMENT
Open in Lexace · Ask the AI about this section
Sec. 21.720. PERSONS BOUND BY SHAREHOLDERS' AGREEMENT. (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.

‹ Prev All Texas sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.