Texas § 21.726 SHAREHOLDERS CONSIDERED DIRECTORS.

Texas Statutes

§ 21.726 — SHAREHOLDERS CONSIDERED DIRECTORS.

Texas § 21.726

Code BOBusiness Organizations Code

This text of Texas § 21.726 (SHAREHOLDERS CONSIDERED DIRECTORS.) 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. § 21.726 (2026).

Text

Sec. 21.726. SHAREHOLDERS CONSIDERED DIRECTORS.

(a)When required by the context of this chapter, the shareholders of a close corporation described by Section 21.725 are considered to be directors of the close corporation for purposes of applying a provision of this chapter, other than a provision relating to the election and removal of directors.

(b)A requirement that an instrument filed with a governmental agency contain a statement that a specified action has been taken by the board of directors is satisfied by a statement that:

(1)the corporation is a close corporation with no board of directors; and

(2)the action was approved by the shareholders of the close corporation or the persons empowered to manage the business and affairs of the close corporation under a shareholders' agreem

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Sec. 21.726. SHAREHOLDERS CONSIDERED DIRECTORS. (a) When required by the context of this chapter, the shareholders of a close corporation described by Section 21.725 are considered to be directors of the close corporation for purposes of applying a provision of this chapter, other than a provision relating to the election and removal of directors.
(b) A requirement that an instrument filed with a governmental agency contain a statement that a specified action has been taken by the board of directors is satisfied by a statement that:
(1) the corporation is a close corporation with no board of directors; and
(2) the action was approved by the shareholders of the close corporation or the persons empowered to manage the business and affairs of the close corporation under a shareholders' agreement.