Texas § BO.21.723 - PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION
Full text of Texas The Texas Constitution § BO.21.723 — PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION, with citation guidance and answers to common questions.
§ BO.21.723. PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION
PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION; LIABILITY. (a) Notwithstanding the person's signature, a person ceases to be a party to, and bound by, a shareholders' agreement when the person ceases to be a shareholder of the close corporation unless: (1) the person's attempted cessation was in violation of Section 21.721 or the shareholders' agreement; or (2) the shareholders' agreement provides to the contrary. (b) Cessation as a party to a shareholders' agreement or as a shareholder does not relieve a person of liability the person may have incurred for breach of the shareholders' agreement. 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.21.723
What does The Texas Constitution § BO.21.723 cover?
Section BO.21.723 ("PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION") 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.21.723?
A common citation format is "The Texas Constitution § BO.21.723" (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.21.723 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.