Texas Business Organizations Code - Section 21.103. Disclosure Of Agreement; Recall Of Certain Certificates
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§ 21.103. DISCLOSURE OF AGREEMENT; RECALL OF CERTAIN
CERTIFICATES. (a) The existence of an agreement authorized by this
subchapter shall be noted conspicuously on the front or back of each
certificate for outstanding shares or on the information statement
required for uncertificated shares by Section 3.205.
(b) The disclosure required by this section must include the
sentence, "These shares are subject to the provisions of a
shareholders' agreement that may provide for management of the
corporation in a manner different than in other corporations and
may subject a shareholder to certain obligations or liabilities not
otherwise imposed on shareholders in other corporations."
(c) A corporation that has outstanding shares represented
by certificates at the time the shareholders of the corporation
enter into an agreement under this subchapter shall recall the
outstanding certificates and issue substitute certificates that
comply with this subchapter.
(d) The failure to note the existence of the agreement on
the certificate or information statement does not affect the
validity of the agreement or an action taken pursuant to the
agreement.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.055 21.056 21.057 21.058 21.059 21.101 21.102 21.103 21.104 21.105 21.106 21.107 21.108 21.109 21.151
Last modified: August 11, 2007
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