Texas § BO.21.707 - EXISTING CLOSE CORPORATION

§ BO.21.707. EXISTING CLOSE CORPORATION

EXISTING CLOSE CORPORATION. (a) This section applies to an existing corporation that elected to become a close corporation before the mandatory application date of this code and has not terminated that status. (b) A close corporation existing before the mandatory application date of this code is considered to be a close corporation under this code. (c) A provision in the articles of incorporation of a close corporation authorized under former law is valid and enforceable if the corporation's status as a close corporation has not been terminated. (d) An agreement among the shareholders of a close corporation in conformance with former law and Sections 21.714-21.725 before the mandatory application date of this code is considered to be a shareholders' agreement. (e) A certificate representing the shares issued or delivered by the close corporation after the mandatory application date of this code, whether in connection with the original issue of shares or a transfer of shares, must conform with Section 21.732 . (f) In this section, "mandatory application date" has the meaning assigned by Section 401.001 . Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737 ), Sec. 86, eff. September 1, 2007.