Texas § BO.21.206 - LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT
Full text of Texas The Texas Constitution § BO.21.206 — LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT, with citation guidance and answers to common questions.
§ BO.21.206. LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT
LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT. (a) An action brought against a corporation, the board of directors or an officer, shareholder, or agent of the corporation, or an owner of a beneficial interest in shares of the corporation for the violation of a preemptive right of a shareholder under Sections 21.203 and 21.204 must be brought not later than the earlier of: (1) the first anniversary of the date written notice is given to each shareholder whose preemptive right was violated; or (2) the fourth anniversary of the latest of: (A) the date the corporation issued the shares, securities, or rights; (B) the date the corporation sold the shares, securities, or rights; or (C) the date the corporation otherwise distributed the shares, securities, or rights. (b) The notice required by Subsection (a)(1) must: (1) be sent to the holder at the address for the holder as shown on the appropriate records of the corporation; and (2) inform the holder that the issuance, sale, or other distribution of shares, securities, or rights violated the holder's preemptive right. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 139 (S.B. 748 ), Sec. 24, eff. September 1, 2011.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § BO.21.206
What does The Texas Constitution § BO.21.206 cover?
Section BO.21.206 ("LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT") 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.21.206?
A common citation format is "The Texas Constitution § BO.21.206" (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.21.206 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.