Tex. Business Organizations Code § 21.719
This is the official text of Tex. Business Organizations Code § 21.719, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.
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§ 21.719. VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.
Official statutory text
(a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:
(1) the elimination of a board of directors;
(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and
(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.
(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.
(1) the elimination of a board of directors;
(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and
(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.
(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.
Status: in_force · Read it on the official government site
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