Texas § BO.21.729 - LIMITATION OF SHAREHOLDER'S LIABILITY

§ BO.21.729. LIMITATION OF SHAREHOLDER'S LIABILITY

LIMITATION OF SHAREHOLDER'S LIABILITY. (a) A shareholder of a close corporation described by Section 21.725 is not liable because of a shareholders' vote or shareholder action without a vote unless the shareholder had the right to vote or consent to the action. (b) A shareholder of a close corporation, without regard to the right to vote or consent, may not be held liable for an action taken by the shareholders or a person empowered to manage the business and affairs of the close corporation under a shareholders' agreement if the shareholder dissents from and has not voted for or consented to the action. (c) The dissent of a shareholder may be proven by: (1) an entry in the minutes of the meeting of shareholders; (2) a written dissent filed with the secretary of the meeting before the adjournment of the meeting; (3) a written dissent that is sent to the secretary of the close corporation: (A) promptly after the meeting or after a written consent was obtained from the other shareholders; and (B) by certified or registered mail, return receipt requested, or by other means specified in the corporation's governing documents; or (4) any other means reasonably evidencing the dissent. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006. Amended by: Acts 2017, 85th Leg., R.S., Ch. 75 (S.B. 1518 ), Sec. 14, eff. September 1, 2017.