Texas § BO.21.105 - RIGHT OF RESCISSION
Full text of Texas The Texas Constitution § BO.21.105 — RIGHT OF RESCISSION, with citation guidance and answers to common questions.
§ BO.21.105. RIGHT OF RESCISSION
RIGHT OF RESCISSION; KNOWLEDGE OF PURCHASER OF SHARES. (a) A purchaser of shares who does not have knowledge at the time of purchase of the existence of a shareholders' agreement authorized by this subchapter is entitled to rescind the purchase. (b) A purchaser is considered to have knowledge of the existence of the shareholders' agreement for purposes of this section if: (1) the existence of the agreement is noted on the certificate or information statement for the shares as required by Section 21.103 ; and (2) with respect to shares that are not represented by a certificate, the information statement noting existence of the agreement is delivered to the purchaser not later than the time the shares are purchased. (c) An action to enforce the right of rescission authorized by this section must be commenced not later than the earlier of: (1) the 90th day after the date the existence of the shareholder agreement is discovered; or (2) the second anniversary of the purchase date of the shares. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BO.21.105
What does The Texas Constitution § BO.21.105 cover?
Section BO.21.105 ("RIGHT OF RESCISSION") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § BO.21.105?
A common citation format is "The Texas Constitution § BO.21.105" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § BO.21.105 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.