(a) This section applies to an existing corporation that elected to become a close corporation before the mandatory application date of this code and has not terminated that status.
(b) A close corporation existing before the mandatory application date of this code is considered to be a close corporation under this code.

Terms Used In Texas Business Organizations Code 21.707

  • Close corporation: means a for-profit corporation that elects to be governed as a close corporation in accordance with Subchapter Texas Business Organizations Code 1.002
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means an entity governed as a corporation under Title 2 or 7. See Texas Business Organizations Code 1.002
  • Law: means , unless the context requires otherwise, both statutory and common law. See Texas Business Organizations Code 1.002

(c) A provision in the articles of incorporation of a close corporation authorized under former law is valid and enforceable if the corporation’s status as a close corporation has not been terminated.
(d) An agreement among the shareholders of a close corporation in conformance with former law and Sections 21.714-21.725 before the mandatory application date of this code is considered to be a shareholders’ agreement.
(e) A certificate representing the shares issued or delivered by the close corporation after the mandatory application date of this code, whether in connection with the original issue of shares or a transfer of shares, must conform with § 21.732.
(f) In this section, “mandatory application date” has the meaning assigned by § 401.001.

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