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Texas Business Organizations Code - BUS ORG § 21.726. Shareholders Considered Directors

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

(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.

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Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 21.726. Shareholders Considered Directors - last updated January 01, 2024 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-21-726/

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