Texas Business Organizations Code - Section 21.168. Stock Rights, Options, And Convertible Indebtedness
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§ 21.168. STOCK RIGHTS, OPTIONS, AND CONVERTIBLE
INDEBTEDNESS. (a) Except as provided by the corporation's
certificate of formation and regardless of whether done in
connection with the issuance and sale of any other share or security
of the corporation, a corporation may create and issue:
(1) rights or options that entitle the holders to
purchase or receive from the corporation shares of any class or
series or other securities; and
(2) indebtedness convertible into shares of any class
or series of the corporation or other securities of the
corporation.
(b) A right, option, or indebtedness described by this
section shall be evidenced in the manner approved by the board of
directors.
(c) Subject to the certificate of formation, a right or
option described by this section must state the terms on which, the
time within which, and any consideration, including a formula by
which the consideration may be determined, for which the shares may
be purchased or received from the corporation on the exercise of the
right or option.
(d) Subject to the certificate of formation, convertible
indebtedness described by this section must state the terms and
conditions on which, the time within which, and the conversion
ratio at which the indebtedness may be converted into shares.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006. Amended by
Acts 2005, 79th Leg., ch. 64, § 45, eff. Jan. 1, 2006.
Section: 21.161 21.162 21.163 21.164 21.165 21.166 21.167 21.168 21.169 21.170 21.171 21.172 21.173 21.201 21.202
Last modified: August 11, 2007
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