Texas Insurance Code 4001.305 – Transfer of Interest in Agency by Shareholder of Corporate Agency
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(a) A shareholder of a corporate licensed agency may, if provided by a contract entered into by each shareholder and the corporation, transfer an interest in the agency to the shareholder’s children or a trust for the shareholder’s children. The children or trust may share in the profits of the agency to the extent of that interest during the children’s lifetime.
(b) The children or trust is not required to qualify as an agent to share in the profits of the corporation but may not perform an act of an agent on behalf of the corporation without qualifying as an agent.
Terms Used In Texas Insurance Code 4001.305
- Contract: A legal written agreement that becomes binding when signed.
- 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.