{"data":{"id":"us-tx/tex.-business-organizations-code-21.719","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.719","heading":"VALIDITY AND ENFORCEABILITY OF SHAREHOLDERS' AGREEMENT.","body":"(a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:\n(1) the elimination of a board of directors;\n(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and\n(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.\n(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.\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#21.719","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"8ee3db699b375aa1043d028f6b1e031abe62b68d494c100d09265fcd94ecf55d","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.718","next":"us-tx/tex.-business-organizations-code-21.720"},"notice":"GroundRules: Original legal text. Not legal advice."}