Texas Business Organizations Code - Section 21.732. Close Corporation Share Certificates
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Texas Laws > Business Organizations Code > Texas Business Organizations Code - Section 21.732. Close Corporation Share Certificates
§ 21.732. CLOSE CORPORATION SHARE CERTIFICATES. (a) In
addition to a matter required or authorized by law to be stated on a
certificate representing shares, each certificate representing
shares issued by a close corporation must conspicuously state on
the front or back of the certificate: "These shares are issued by a
close corporation as defined by the Texas Business Organizations
Code. Under Chapter 21 of that code, a shareholders' agreement may
provide for management of a close corporation by the shareholders
or in other ways different from an ordinary corporation. This may
subject the holder of this certificate to certain obligations and
liabilities not otherwise imposed on shareholders of an ordinary
corporation. On a sale or transfer of these shares, the transferor
is required to deliver to the transferee a complete copy of any
shareholders' agreement."
(b) Notwithstanding this chapter and Section 3.202, the
status of a corporation as a close corporation is not affected by
the failure of a share certificate to contain the statement
required by Subsection (a).
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 21.725 21.726 21.727 21.728 21.729 21.730 21.731 21.732 21.751 21.752 21.753 21.754 21.755 21.756 21.757
Last modified: August 11, 2007
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