Texas § BO.21.719 - VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT
Full text of Texas The Texas Constitution § BO.21.719 — VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT, with citation guidance and answers to common questions.
§ BO.21.719. VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT
VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT. (a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding: (1) the elimination of a board of directors; (2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and (3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners. (b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756 . 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.21.719
What does The Texas Constitution § BO.21.719 cover?
Section BO.21.719 ("VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT") 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.21.719?
A common citation format is "The Texas Constitution § BO.21.719" (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.21.719 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.