{"data":{"id":"us-tx/tex.-business-organizations-code-21.723","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.723","heading":"PARTY NOT BOUND BY SHAREHOLDERS' AGREEMENT ON CESSATION; LIABILITY.","body":"(a) Notwithstanding the person's signature, a person ceases to be a party to, and bound by, a shareholders' agreement when the person ceases to be a shareholder of the close corporation unless:\n(1) the person's attempted cessation was in violation of Section 21.721 or the shareholders' agreement; or\n(2) the shareholders' agreement provides to the contrary.\n(b) Cessation as a party to a shareholders' agreement or as a shareholder does not relieve a person of liability the person may have incurred for breach of the shareholders' agreement.\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#21.723","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"9b9d1901ec8c0dcab623533ab8431184dabb3961034868d21502cb8b38a7b85f","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.722","next":"us-tx/tex.-business-organizations-code-21.724"},"notice":"GroundRules: Original legal text. Not legal advice."}