{"data":{"id":"us-tx/tex.-business-organizations-code-21.730","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 21.730","heading":"LACK OF FORMALITIES; TREATMENT AS PARTNERSHIP.","body":"The failure of a close corporation under this subchapter to observe a usual formality or requirement prescribed for an ordinary corporation by this chapter relating to the exercise of corporate powers or the management of a corporation's business and affairs and the performance of a shareholders' agreement that treats the close corporation as if the corporation were a partnership or in a manner that otherwise is appropriate only among partners may not:\n(1) be a factor in determining whether to impose personal liability on the shareholders for the close corporation's obligations by disregarding the separate entity of the close corporation or otherwise;\n(2) be grounds for invalidating an otherwise valid shareholders' agreement; or\n(3) affect the status of the close corporation as a corporation under this chapter or other law.\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#21.730","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"207549910d3b4a6e36dc600906dc2a36da2c5340ce7682900d77f7f2438f7a35","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-21.729","next":"us-tx/tex.-business-organizations-code-21.731"},"notice":"GroundRules: Original legal text. Not legal advice."}