Sec. 21.727. LIABILITY OF SHAREHOLDERS. The shareholders of a close corporation described by Section 21.725 are subject to any liability imposed on a director of a corporation by this chapter or other law for a managerial act of or omission made by the shareholders or any other person empowered to manage the business and affairs of the close corporation under a shareholders' agreement and relating to the business and affairs of the close corporation, if the action is required by law to be undertaken by the board of directors.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 21 - For-Profit Corporations
Subchapter O. Close Corporation
Section 21.702. Applicability of Subchapter
Section 21.703. Formation of Close Corporation
Section 21.704. Bylaws of Close Corporation
Section 21.705. Adoption of Amendment for Close Corporation Status
Section 21.706. Adoption of Close Corporation Status Through Merger, Exchange, or Conversion
Section 21.707. Existing Close Corporation
Section 21.708. Termination of Close Corporation Status
Section 21.709. Statement Terminating Close Corporation Status; Filing; Notice
Section 21.710. Effect of Termination of Close Corporation Status
Section 21.711. Shareholders' Meeting to Elect Directors
Section 21.712. Term of Office of Directors
Section 21.714. Shareholders' Agreement
Section 21.715. Execution of Shareholders' Agreement
Section 21.716. Adoption of Amendment of Shareholders' Agreement
Section 21.717. Delivery of Shareholders' Agreement
Section 21.718. Statement of Operation as Close Corporation
Section 21.719. Validity and Enforceability of Shareholders' Agreement
Section 21.720. Persons Bound by Shareholders' Agreement
Section 21.721. Delivery of Copy of Shareholders' Agreement to Transferee
Section 21.723. Party Not Bound by Shareholders' Agreement on Cessation; Liability
Section 21.724. Termination of Shareholders' Agreement
Section 21.725. Consequences of Management by Persons Other Than Board of Directors
Section 21.726. Shareholders Considered Directors
Section 21.727. Liability of Shareholders
Section 21.728. Mode and Effect of Taking Action by Shareholders and Others
Section 21.729. Limitation of Shareholder's Liability
Section 21.730. Lack of Formalities; Treatment as Partnership
Section 21.731. Other Agreements Among Shareholders Permitted