Texas § 21.370 ENFORCEABILITY OF PROXY.

Texas Statutes

§ 21.370 — ENFORCEABILITY OF PROXY.

Texas § 21.370

Code BOBusiness Organizations Code

This text of Texas § 21.370 (ENFORCEABILITY OF PROXY.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Business Organizations Code Code Ann. § 21.370 (2026).

Text

Sec. 21.370. ENFORCEABILITY OF PROXY.

(a)An irrevocable proxy is specifically enforceable against the holder of shares or any successor or transferee of the holder if:

(1)the proxy is noted conspicuously on the certificate representing the shares subject to the proxy; or

(2)in the case of uncertificated shares, notation of the proxy is contained in the notice sent under Section 3.205 with respect to the shares subject to the proxy.

(b)An irrevocable proxy that is otherwise enforceable is ineffective against a transferee for value without actual knowledge of the existence of the irrevocable proxy at the time of the transfer or against a subsequent transferee, regardless of whether the transfer is for value, unless the proxy is:

(1)noted conspicuously on the certificate representing the

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Sec. 21.370. ENFORCEABILITY OF PROXY. (a) An irrevocable proxy is specifically enforceable against the holder of shares or any successor or transferee of the holder if:
(1) the proxy is noted conspicuously on the certificate representing the shares subject to the proxy; or
(2) in the case of uncertificated shares, notation of the proxy is contained in the notice sent under Section 3.205 with respect to the shares subject to the proxy.
(b) An irrevocable proxy that is otherwise enforceable is ineffective against a transferee for value without actual knowledge of the existence of the irrevocable proxy at the time of the transfer or against a subsequent transferee, regardless of whether the transfer is for value, unless the proxy is:
(1) noted conspicuously on the certificate representing the shares subject to the proxy; or
(2) in the case of uncertificated shares, notation of the proxy is contained in the notice sent under Section 3.205 with respect to the shares subject to the proxy.
(c) An irrevocable proxy shall be specifically enforceable against a person who is not a transferee for value from the time the person acquires actual knowledge of the existence of the irrevocable proxy.