(a) Before the transfer of shares of a close corporation in which there is a shareholders’ agreement, the transferor shall deliver a complete copy of the shareholders’ agreement to the transferee.
(b) If the transferor fails to deliver a complete copy of the shareholders’ agreement:
(1) the validity and enforceability of the shareholders’ agreement against each shareholder of the corporation, including the transferee, is not affected;
(2) the right, title, or interest of the transferee in the transferred shares is not adversely affected; and
(3) the transferee is entitled to obtain on demand from the transferor or from the close corporation a complete copy of the shareholders’ agreement at the transferor’s expense.

Terms Used In Texas Business Organizations Code 21.721

  • 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
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