Section 21.707 - Existing Close Corporation(a) This section applies to an existing corporation that elected to become a close corporation before the mandatory application date of this code and has not terminated that status.(b) A close corporation existing before the mandatory application date of this code is considered to be a close corporation under this code.(c) A provision in the articles of incorporation of a close corporation authorized under former law is valid and enforceable if the corporation's status as a close corporation has not been terminated.(d) An agreement among the shareholders of a close corporation in conformance with former law and Sections 21.714-21.725 before the mandatory application date of this code is considered to be a shareholders' agreement.(e) A certificate representing the shares issued or delivered by the close corporation after the mandatory application date of this code, whether in connection with the original issue of shares or a transfer of shares, must conform with Section 21.732.(f) In this section, "mandatory application date" has the meaning assigned by Section 401.001.Tex. Bus. Org. Code § 21.707
Amended by Acts 2007, 80th Leg., R.S., Ch. 688, Sec. 86, eff. 9/1/2007. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.