(a) Notwithstanding the person‘s signature, a person ceases to be a party to, and bound by, a shareholders’ agreement when the person ceases to be a shareholder of the close corporation unless:
(1) the person’s attempted cessation was in violation of § 21.721 or the shareholders’ agreement; or
(2) the shareholders’ agreement provides to the contrary.
(b) Cessation as a party to a shareholders’ agreement or as a shareholder does not relieve a person of liability the person may have incurred for breach of the shareholders’ agreement.

Terms Used In Texas Business Organizations Code 21.723

  • Person: means an individual or a corporation, partnership, limited liability company, business trust, trust, association, or other organization, estate, government or governmental subdivision or agency, or other legal entity, or a protected series or registered series of a domestic limited liability company or foreign entity. See Texas Business Organizations Code 1.002
  • Signature: means any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Business Organizations Code 1.002
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