{"data":{"id":"us-tx/tex.-business-organizations-code-21.718","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.718","heading":"STATEMENT OF OPERATION AS CLOSE CORPORATION.","body":"(a) On or after the formation of a close corporation or adoption of close corporation status, a close corporation that begins to conduct its business and affairs under a shareholders' agreement that has become effective shall promptly execute and file with the secretary of state a statement of operation as a close corporation in accordance with Chapter 4.\n(b) The statement required by Subsection (a) must:\n(1) contain the name of the close corporation;\n(2) state that the close corporation is being operated and its business and affairs are being conducted under the terms of a shareholders' agreement under this subchapter; and\n(3) contain the date the operation of the corporation began.\n(c) A statement of operation as a close corporation shall be executed by an officer on behalf of the corporation.\n(d) On the filing of the statement of operation as a close corporation, the fact that the close corporation is being operated and its business and affairs are being conducted under the terms of a shareholders' agreement becomes a matter of public record.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 2. CORPORATIONS","CHAPTER 21. FOR-PROFIT CORPORATIONS","SUBCHAPTER O. CLOSE CORPORATION"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm#21.718","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"a23a67509b4551de8bb76cdc4c57601cd7267fc77858f20911989d52b79a6a8d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.717","next":"us-tx/tex.-business-organizations-code-21.719"},"notice":"GroundRules: Original legal text. Not legal advice."}