Texas Business Organizations Code 303.004 – Redemption of Shares; Price and Terms
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(a) A professional corporation may redeem shares of a shareholder, including a deceased shareholder.
(b) The price and other terms of a redemption of shares may be:
(1) agreed to between the board of directors of the professional corporation and the shareholder or the shareholder’s personal representative; or
(2) specified in the governing documents of the professional corporation or an applicable agreement.
Terms Used In Texas Business Organizations Code 303.004
- 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
- Governing documents: means :
(A) in the case of a domestic entity:
(i) the certificate of formation for a domestic filing entity or the document or agreement under which a domestic nonfiling entity is formed; and
(ii) the other documents or agreements adopted by the entity under this code to govern the formation or the internal affairs of the entity; or
(B) in the case of a foreign entity, the instruments, documents, or agreements adopted under the law of its jurisdiction of formation to govern the formation or the internal affairs of the entity. See Texas Business Organizations Code 1.002 - Professional corporation: has the meaning assigned by § 301. See Texas Business Organizations Code 1.002