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Texas Business Organizations Code - BUS ORG § 21.720. Persons Bound by Shareholders' Agreement

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A shareholders' agreement executed in accordance with Section 21.715 is:

(1) considered to be an agreement among all of the shareholders of the close corporation;  and

(2) binding on and enforceable against each shareholder of the close corporation, regardless of whether:

(A) a particular shareholder acquired shares in the close corporation by purchase, gift, bequest, or otherwise;  or

(B) the shareholder had actual knowledge of the existence of the shareholders' agreement at the time of acquiring shares.

(b) A transferee or assignee of shares of a close corporation in which there is a shareholders' agreement is bound by the agreement for all purposes, regardless of whether the transferee or assignee executed or was aware of the agreement.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 21.720. Persons Bound by Shareholders' Agreement - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-21-720/

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