Texas § 21.719 VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.

Texas Statutes

§ 21.719 — VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.

Texas § 21.719

Code BOBusiness Organizations Code

This text of Texas § 21.719 (VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.) 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. § 21.719 (2026).

Text

Sec. 21.719. VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.

(a)A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:

(1)the elimination of a board of directors;

(2)any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and

(3)that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.

(b)A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Secti

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Sec. 21.719. VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT. (a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:
(1) the elimination of a board of directors;
(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and
(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.
(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756 .