Texas Business Organizations Code - Section 21.105. Right Of Rescission; Knowledge Of Purchaser Of Shares
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Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 21.105. Right Of Rescission; Knowledge Of Purchaser Of Shares
§ 21.105. RIGHT OF RESCISSION; KNOWLEDGE OF PURCHASER OF
SHARES. (a) A purchaser of shares who does not have knowledge at
the time of purchase of the existence of a shareholders' agreement
authorized by this subchapter is entitled to rescind the purchase.
(b) A purchaser is considered to have knowledge of the
existence of the shareholders' agreement for purposes of this
section if:
(1) the existence of the agreement is noted on the
certificate or information statement for the shares as required by
Section 21.103; and
(2) with respect to shares that are not represented by
a certificate, the information statement noting existence of the
agreement is delivered to the purchaser not later than the time the
shares are purchased.
(c) An action to enforce the right of rescission authorized
by this section must be commenced not later than the earlier of:
(1) the 90th day after the date the existence of the
shareholder agreement is discovered; or
(2) the second anniversary of the purchase date of the
shares.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 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 21.152 21.153
Last modified: August 11, 2007
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