Texas § 21.602 AFFILIATED SHAREHOLDER.

Texas Statutes

§ 21.602 — AFFILIATED SHAREHOLDER.

Texas § 21.602

Code BOBusiness Organizations Code

This text of Texas § 21.602 (AFFILIATED SHAREHOLDER.) 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. § 21.602 (2026).

Text

Sec. 21.602. AFFILIATED SHAREHOLDER.

(a)For purposes of this subchapter, a person, other than the issuing public corporation or a wholly owned subsidiary of the issuing public corporation, is an affiliated shareholder if the person:

(1)is the beneficial owner of 20 percent or more of the outstanding voting shares of the issuing public corporation; or

(2)during the preceding three-year period, was the beneficial owner of 20 percent or more of the outstanding voting shares of the issuing public corporation.

(b)To determine whether a person is an affiliated shareholder, the number of voting shares of the issuing public corporation considered outstanding includes shares considered beneficially owned by that person under Section 21.603 , but does not include other unissued voting shares of

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Sec. 21.602. AFFILIATED SHAREHOLDER. (a) For purposes of this subchapter, a person, other than the issuing public corporation or a wholly owned subsidiary of the issuing public corporation, is an affiliated shareholder if the person:
(1) is the beneficial owner of 20 percent or more of the outstanding voting shares of the issuing public corporation; or
(2) during the preceding three-year period, was the beneficial owner of 20 percent or more of the outstanding voting shares of the issuing public corporation.
(b) To determine whether a person is an affiliated shareholder, the number of voting shares of the issuing public corporation considered outstanding includes shares considered beneficially owned by that person under Section 21.603 , but does not include other unissued voting shares of the issuing public corporation that may be issuable under an agreement, arrangement, or understanding, or on exercise of conversion rights, warrants, or options.