{"data":{"id":"us-tx/tex.-business-organizations-code-21.726","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.726","heading":"SHAREHOLDERS CONSIDERED DIRECTORS.","body":"(a) When required by the context of this chapter, the shareholders of a close corporation described by Section 21.725 are considered to be directors of the close corporation for purposes of applying a provision of this chapter, other than a provision relating to the election and removal of directors.\n(b) A requirement that an instrument filed with a governmental agency contain a statement that a specified action has been taken by the board of directors is satisfied by a statement that:\n(1) the corporation is a close corporation with no board of directors; and\n(2) the action was approved by the shareholders of the close corporation or the persons empowered to manage the business and affairs of the close corporation under a 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#21.726","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"c0c3708b95dbf6d3f2e92c525bb8ddcd6d12e79f6503bf4143221f3501ce05d5","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.725","next":"us-tx/tex.-business-organizations-code-21.727"},"notice":"GroundRules: Original legal text. Not legal advice."}