Texas Business Organizations Code - Section 21.109. Agreement Not Effective
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§ 21.109. AGREEMENT NOT EFFECTIVE. (a) A shareholders'
agreement authorized by this subchapter ceases to be effective when
shares of the corporation are:
(1) listed on a national securities exchange or
similar system;
(2) quoted on an interdealer quotation system of a
national securities association or successor system; or
(3) regularly traded in a market maintained by one or
more members of a national or affiliated securities association.
(b) If a corporation does not have a board of directors and
an agreement of the shareholders of the corporation entered into
under this subchapter ceases to be effective, a board of directors
shall be instituted or reinstated to govern the corporation in the
manner provided by Section 21.710(c).
(c) If a shareholders' agreement that ceases to be effective
is contained in or referred to by the certificate of formation or
bylaws of a corporation, the board of directors of the corporation
may adopt an amendment to the certificate of formation or bylaws,
without shareholder action, to delete the agreement and any
references to the agreement.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.102 21.103 21.104 21.105 21.106 21.107 21.108 21.109 21.151 21.152 21.153 21.154 21.155 21.156 21.157
Last modified: August 11, 2007
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