Texas § BO.21.732 - CLOSE CORPORATION SHARE CERTIFICATES
Full text of Texas The Texas Constitution § BO.21.732 — CLOSE CORPORATION SHARE CERTIFICATES, with citation guidance and answers to common questions.
§ BO.21.732. CLOSE CORPORATION SHARE CERTIFICATES
CLOSE CORPORATION SHARE CERTIFICATES. (a) In addition to a matter required or authorized by law to be stated on a certificate representing shares, each certificate representing shares issued by a close corporation must conspicuously state on the front or back of the certificate: "These shares are issued by a close corporation as defined by the Texas Business Organizations Code. Under Chapter 21 of that code, a shareholders' agreement may provide for management of a close corporation by the shareholders or in other ways different from an ordinary corporation. This may subject the holder of this certificate to certain obligations and liabilities not otherwise imposed on shareholders of an ordinary corporation. On a sale or transfer of these shares, the transferor is required to deliver to the transferee a complete copy of any shareholders' agreement." (b) Notwithstanding this chapter and Section 3.202 , the status of a corporation as a close corporation is not affected by the failure of a share certificate to contain the statement required by Subsection (a). Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. SUBCHAPTER P. JUDICIAL PROCEEDINGS RELATING TO CLOSE CORPORATION
Frequently Asked Questions About Texas § BO.21.732
What does The Texas Constitution § BO.21.732 cover?
Section BO.21.732 ("CLOSE CORPORATION SHARE CERTIFICATES") 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.21.732?
A common citation format is "The Texas Constitution § BO.21.732" (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.21.732 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.