Texas § 21.109 AGREEMENT NOT EFFECTIVE.

Texas Statutes

§ 21.109 — AGREEMENT NOT EFFECTIVE.

Texas § 21.109

Code BOBusiness Organizations Code

This text of Texas § 21.109 (AGREEMENT NOT EFFECTIVE.) 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. § 21.109 (2026).

Text

Sec. 21.109. AGREEMENT NOT EFFECTIVE.

(a)A shareholders' agreement authorized by this subchapter ceases to be effective when shares of the corporation are:

(1)listed on a national securities exchange; or

(2)regularly traded in a market maintained by one or more members of a national or affiliated securities association.

(b)If a corporation does not have a board of directors and an agreement of the shareholders of the corporation entered into under this subchapter ceases to be effective, a board of directors shall be instituted or reinstated to govern the corporation in the manner provided by Section 21.710 (c).

(c)If a shareholders' agreement that ceases to be effective is contained in or referred to by the certificate of formation or bylaws of a corporation, the board of directors of

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Sec. 21.109. AGREEMENT NOT EFFECTIVE.
(a) A shareholders' agreement authorized by this subchapter ceases to be effective when shares of the corporation are:
(1) listed on a national securities exchange; or
(2) regularly traded in a market maintained by one or more members of a national or affiliated securities association.
(b) If a corporation does not have a board of directors and an agreement of the shareholders of the corporation entered into under this subchapter ceases to be effective, a board of directors shall be instituted or reinstated to govern the corporation in the manner provided by Section 21.710 (c).
(c) If a shareholders' agreement that ceases to be effective is contained in or referred to by the certificate of formation or bylaws of a corporation, the board of directors of the corporation may adopt an amendment to the certificate of formation or bylaws, without shareholder action, to delete the agreement and any references to the agreement.

Legislative History

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748 ), Sec. 21, eff. September 1, 2011.