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Current as of January 01, 2024 | Updated by FindLaw Staff
(a) Before the transfer of shares of a close corporation in which there is a shareholders' agreement, the transferor shall deliver a complete copy of the shareholders' agreement to the transferee.
(b) If the transferor fails to deliver a complete copy of the shareholders' agreement:
(1) the validity and enforceability of the shareholders' agreement against each shareholder of the corporation, including the transferee, is not affected;
(2) the right, title, or interest of the transferee in the transferred shares is not adversely affected; and
(3) the transferee is entitled to obtain on demand from the transferor or from the close corporation a complete copy of the shareholders' agreement at the transferor's expense.
Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 21.721. Delivery of Copy of Shareholders' Agreement to Transferee - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-21-721/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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