Texas § BO.21.720 - PERSONS BOUND BY SHAREHOLDERS' AGREEMENT
Full text of Texas The Texas Constitution § BO.21.720 — PERSONS BOUND BY SHAREHOLDERS' AGREEMENT, with citation guidance and answers to common questions.
§ BO.21.720. PERSONS BOUND BY SHAREHOLDERS' AGREEMENT
PERSONS BOUND BY SHAREHOLDERS' AGREEMENT. (a) A shareholders' agreement executed in accordance with Section 21.715 is: (1) considered to be an agreement among all of the shareholders of the close corporation; and (2) binding on and enforceable against each shareholder of the close corporation, regardless of whether: (A) a particular shareholder acquired shares in the close corporation by purchase, gift, bequest, or otherwise; or (B) the shareholder had actual knowledge of the existence of the shareholders' agreement at the time of acquiring shares. (b) A transferee or assignee of shares of a close corporation in which there is a shareholders' agreement is bound by the agreement for all purposes, regardless of whether the transferee or assignee executed or was aware of the agreement. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Frequently Asked Questions About Texas § BO.21.720
What does The Texas Constitution § BO.21.720 cover?
Section BO.21.720 ("PERSONS BOUND BY 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.21.720?
A common citation format is "The Texas Constitution § BO.21.720" (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.21.720 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.