TITLE: Relating to a request by the owner of an ownership interest in a domestic entity that the interest be uncertificated.

SUMMARY: Relating to a request by the owner of an ownership interest in a domestic entity that the interest be uncertificated.

FULL TEXT:
AN ACT relating to a request by the owner of an ownership interest in a domestic entity that the interest be uncertificated. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter E, Chapter 3, Business Organizations Code, is amended by adding Section 3.206 to read as follows: Sec. 3.206. REQUEST BY OWNER OF AN OWNERSHIP INTEREST THAT THE INTEREST BE UNCERTIFICATED. A domestic entity that is required by law or its governing documents to issue shares based on certificated and uncertificated ownership interest is not in violation of the law or its governing documents for failure to issue a certificated share of ownership to an owner if the owner has specifically made a request before the issuance of the shares that the ownership interest be uncertificated. SECTION 2. This Act applies only to the issuance of shares by a domestic entity on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2011.