Sec. 4005.007. EXISTING SECURITY HOLDERS. (a) In this section, "existing security holder" includes a person who is a holder of a convertible security or nontransferable warrant at the time of the transaction.
(b) The exemption provided by Section 4005.001 applies to an offer by the issuer of its securities to the issuer's existing security holders and to any transaction pursuant to the offer if no commission or other remuneration, other than a stand-by commission, is paid or given directly or indirectly for soliciting any security holder in this state.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Structure Texas Statutes
Subchapter A. Exempt Transactions
Section 4005.001. Scope of Exemption
Section 4005.002. Court Supervised Sales
Section 4005.003. Pledged Securities
Section 4005.004. Isolated Transactions
Section 4005.005. Insurance Company Sales
Section 4005.006. Stock Dividends
Section 4005.007. Existing Security Holders
Section 4005.008. Financial Distress
Section 4005.009. Merger, Consolidation, and Asset Sales
Section 4005.010. Exchange of Shares
Section 4005.011. Institutional Investors
Section 4005.012. Private Limited Offerings
Section 4005.013. Compensation Plans and Contracts
Section 4005.014. Mortgages and Liens
Section 4005.016. Financial Institutions
Section 4005.017. Government Issuance or Guarantee
Section 4005.018. Cooperatives
Section 4005.019. Secondary Market Sales
Section 4005.020. Unsolicited Orders
Section 4005.021. Oil, Gas, or Mining Interests
Section 4005.022. Issuer Sales of Exempt Securities