Source: https://chowinslaw.com/resources/texas-business-laws/293-shareholder-rights-and-restrictions-texas-business-organizations
Timestamp: 2019-04-23 04:07:50+00:00

Document:
§ 21.201. REGISTERED HOLDERS AS OWNERS; SHARES HELD BY NOMINEES.
(6) any other shareholder action.
(b) A corporation may establish a procedure by which the corporation recognizes as a shareholder the beneficial owner of shares registered in the name of a nominee.
(2) include the nominee's filing of a statement with the corporation that contains information regarding the beneficial owner.
(6) any other aspect of the rights and duties to be established under the procedure.
§ 21.202. DEFINITION OF SHARES.
(2) that carries a right to subscribe for or acquire shares.
§ 21.203. NO STATUTORY PREEMPTIVE RIGHT UNLESS PROVIDED BY CERTIFICATE OF FORMATION.
(a) Except as provided by § 21.208, a shareholder of a corporation does not have a preemptive right under this subchapter to acquire the corporation's unissued or treasury shares except to the extent provided by the corporation's certificate of formation.
(b) If the certificate of formation includes a statement that the corporation "elects to have a preemptive right" or a similar statement, § 21.204 applies to a shareholder except to the extent the certificate of formation expressly provides otherwise.
(2) the governing documents of the corporation.
§ 21.204. STATUTORY PREEMPTIVE RIGHTS.
(a) If the shareholders of a corporation have a preemptive right under this subchapter, the shareholders have a preemptive right to acquire proportional amounts of the corporation's unissued or treasury shares on the decision of the corporation's board of directors to issue the shares. The preemptive right granted under this subsection is subject to uniform terms and conditions prescribed by the board of directors to provide a fair and reasonable opportunity to exercise the preemptive right.
(4) shares sold, issued, or granted by the corporation for consideration other than money.
(c) A holder of a share of a class without general voting rights but with a preferential right to distributions of profits, income, or assets does not have a preemptive right with respect to shares of any class.
(d) A holder of a share of a class with general voting rights but without preferential rights to distributions of profits, income, or assets does not have a preemptive right with respect to shares of any class with preferential rights to distributions of profits, income, or assets unless the shares with preferential rights are convertible into or carry a right to subscribe for or acquire shares without preferential rights.
(e) For a one-year period after the date the shares have been offered to shareholders, shares subject to preemptive rights that are not acquired by a shareholder may be issued to a person at a consideration set by the corporation's board of directors that is not lower than the consideration set for the exercise of preemptive rights. An offer at a lower consideration or after the expiration of the period prescribed by this subsection is subject to the shareholder's preemptive rights.
§ 21.205. WAIVER OF PREEMPTIVE RIGHT.
(a) A shareholder may waive a preemptive right granted to the shareholder.
(b) A written waiver of a preemptive right is irrevocable regardless of whether the waiver is supported by consideration.
§ 21.206. LIMITATION ON ACTION TO ENFORCE PREEMPTIVE RIGHT.
(C) the date the corporation otherwise distributed the shares, securities, or rights.
(2) inform the holder that the issuance, sale, or other distribution of shares, securities, or rights violated the holder's preemptive right.
§ 21.207. DISPOSITION OF SHARES HAVING PREEMPTIVE RIGHTS.
The transferee or successor of a share that has been transferred or otherwise disposed of by a shareholder of a corporation whose preemptive right to acquire shares in the corporation has been violated does not acquire the preemptive right, or any right or claim based on the violation, unless the previous shareholder has assigned the preemptive right to the transferee or successor.
§ 21.208. PREEMPTIVE RIGHT IN EXISTING CORPORATION.
Subject to the certificate of formation, a shareholder of a corporation incorporated before September 1, 2003, has a preemptive right to acquire unissued or treasury shares of the corporation to the extent provided by §§ 21.204, 21.206, and 21.207. After September 1, 2003, a corporation may limit or deny the preemptive right of the shareholders of the corporation by amending the corporation's certificate of formation.
§ 21.209. TRANSFER OF SHARES AND OTHER SECURITIES.
Except as otherwise provided by this code, the shares and other securities of a corporation are transferable in accordance with Chapter 8, Business & Commerce Code.
§ 21.210. RESTRICTION ON TRANSFER OF SHARES AND OTHER SECURITIES.
(B) the copy of the agreement is subject to the same right of examination by a shareholder of the corporation, in person or by agent, attorney, or accountant, as the books and records of the corporation.
(b) A restriction imposed under Subsection (a) is not valid with respect to a security issued before the restriction has been adopted, unless the holder of the security voted in favor of the restriction or is a party to the agreement imposing the restriction.
§ 21.211. VALID RESTRICTIONS ON TRANSFER.
(9) causes or results in the automatic sale or transfer of an amount of restricted securities to a person or group of persons, including the corporation or other holders of securities of the corporation.
(2) maintains a statutory or regulatory advantage or complies with a statutory or regulatory requirement under applicable local, state, federal, or foreign law.
§ 21.212. BYLAW OR AGREEMENT RESTRICTING TRANSFER OF SHARES OR OTHER SECURITIES.
(3) states that the filing has been authorized by the board of directors or, in the case of a corporation that is managed in some other manner under a shareholders' agreement, by the person empowered by the agreement to manage the corporation's business and affairs.
(b) After a statement described by Subsection (a) is filed with the secretary of state, the bylaws or agreement restricting the transfer of shares or other securities is a public record, and the fact that the statement has been filed may be stated on a certificate representing the restricted shares or securities if required by § 3.202.
(c) A corporation that is a party to an agreement restricting the transfer of the shares or other securities of the corporation may make the agreement part of the corporation's certificate of formation without restating the provisions of the agreement in the certificate of formation by amending the certificate of formation. If the agreement alters any provision of the certificate of formation, the certificate of amendment shall identify the altered provision by reference or description. If the agreement is an addition to the certificate of formation, the certificate of amendment must state that fact.
(3) state that inclusion of the certificate of amendment as part of the certificate of formation has been authorized in the manner required by this code to amend the certificate of formation.
§ 21.213. ENFORCEABILITY OF RESTRICTION ON TRANSFER OF CERTAIN SECURITIES.
(2) with respect to an uncertificated security, the restriction is reasonable and a notation of the restriction is contained in the notice sent with respect to the security under § 3.205.
(b) Unless noted in the manner specified by Subsection (a) with respect to a certificate or other instrument or an uncertificated security, an otherwise enforceable restriction is ineffective against a transferee for value without actual knowledge of the restriction at the time of the transfer or against a subsequent transferee, regardless of whether the transfer is for value. A restriction is specifically enforceable against a person other than a transferee for value from the time the person acquires actual knowledge of the restriction's existence.
§ 21.214. JOINT OWNERSHIP OF SHARES.
(a) If shares are registered on the books of a corporation in the names of two or more persons as joint owners with the right of survivorship and one of the owners dies, the corporation may record on its books and effect the transfer of the shares to a person, including the surviving joint owner, and pay any distributions made with respect to the shares, as if the surviving joint owner was the absolute owner of the shares. The recording and distribution authorized by this subsection must be made after the death of a joint owner and before the corporation receives actual written notice that a party other than a surviving joint owner is claiming an interest in the shares or distribution.
(b) The discharge of a corporation from liability under § 21.216 and the transfer of full legal and equitable title of the shares does not affect, reduce, or limit any cause of action existing in favor of an owner of an interest in the shares or distributions against the surviving owner.
§ 21.215. LIABILITY FOR DESIGNATING OWNER OF SHARES.
A corporation or an officer, director, employee, or agent of the corporation may not be held liable for considering the person who is registered as the owner of a share in the share transfer records of the corporation at a particular time to be the owner of the share at that time for a purpose described by § 21.201, regardless of whether the person possesses a certificate for that share.
§ 21.216. LIABILITY REGARDING JOINT OWNERSHIP OF SHARES.
A corporation that transfers shares or makes a distribution to a surviving joint owner under § 21.214 before the corporation has received a written claim for the shares or distribution from another person is discharged from liability for the transfer or payment.
§ 21.217. LIABILITY OF ASSIGNEE OR TRANSFEREE.
An assignee or transferee of certificated shares, uncertificated shares, or a subscription for shares in good faith and without knowledge that full consideration for the shares or subscription has not been paid may not be held personally liable to the corporation or a creditor of the corporation for an unpaid portion of the consideration.
§ 21.218. EXAMINATION OF RECORDS.
(a) In this section, a holder of a beneficial interest in a voting trust entered into under § 6.251 is a holder of the shares represented by the beneficial interest.
(b) On written demand stating a proper purpose, a holder of shares of a corporation for at least six months immediately preceding the holder's demand, or a holder of at least five percent of all of the outstanding shares of a corporation, is entitled to examine and copy, at a reasonable time, the corporation's books, records of account, minutes, and share transfer records relating to the stated purpose. The examination may be conducted in person or through an agent, accountant, or attorney.
(c) This § does not impair the power of a court, on the presentation of proof of proper purpose by a beneficial or record holder of shares, to compel the production for examination by the holder of the books and records of accounts, minutes, and share transfer records of a corporation, regardless of the period during which the holder was a beneficial holder or record holder and regardless of the number of shares held by the person.
§ 21.219. ANNUAL AND INTERIM STATEMENTS OF CORPORATION.
(2) the most recent interim statements, if any, that have been filed in a public record or other publication.
(b) The corporation shall be allowed a reasonable time to prepare the annual statements.
§ 21.220. PENALTY FOR FAILURE TO PREPARE VOTING LIST.
An officer or agent of a corporation who is in charge of the corporation's share transfer records and who does not prepare the list of shareholders, keep the list on file for a 10-day period, or produce and keep the list available for inspection at the annual meeting as required by §§ 21.354 and 21.372 is liable to a shareholder who suffers damages because of the failure for the damage caused by the failure.
§ 21.221. PENALTY FOR FAILURE TO PROVIDE NOTICE OF MEETING.
If an officer or agent of a corporation is unable to comply with the duties prescribed by §§ 21.354 and 21.372 because the officer or agent did not receive notice of a meeting of shareholders within a sufficient time before the date of the meeting, the corporation, rather than the officer or agent, is liable to a shareholder who suffers damages because of the failure for the extent of the damage caused by the failure.
§ 21.222. PENALTY FOR REFUSAL TO PERMIT EXAMINATION OF CERTAIN RECORDS.
(a) A corporation that refuses to allow a person to examine and make copies of account records, minutes, and share transfer records under § 21.218 is liable to the shareholder for any cost or expense, including attorney's fees, incurred in enforcing the shareholder's rights under § 21.218. The liability imposed on a corporation under this subsection is in addition to any other damages or remedy afforded to the shareholder by law.
(4) was not acting in good faith or for a proper purpose in making the person's request for examination.
§ 21.223. LIMITATION OF LIABILITY FOR OBLIGATIONS.
(B) observe any requirement prescribed by this code or the certificate of formation or bylaws of the corporation for acts to be taken by the corporation or its directors or shareholders.
(b) Subsection (a)(2) does not prevent or limit the liability of a holder, beneficial owner, subscriber, or affiliate if the obligee demonstrates that the holder, beneficial owner, subscriber, or affiliate caused the corporation to be used for the purpose of perpetrating and did perpetrate an actual fraud on the obligee primarily for the direct personal benefit of the holder, beneficial owner, subscriber, or affiliate.
§ 21.224. PREEMPTION OF LIABILITY.
The liability of a holder, beneficial owner, or subscriber of shares of a corporation, or any affiliate of such a holder, owner, or subscriber or of the corporation, for an obligation that is limited by § 21.223 is exclusive and preempts any other liability imposed for that obligation under common law or otherwise.
§ 21.225. EXCEPTIONS TO LIMITATIONS.
(2) is otherwise liable to the obligee for the obligation under this code or other applicable statute.
§ 21.226. PLEDGEES AND TRUST ADMINISTRATORS.
(a) A pledgee or other holder of shares as collateral security is not personally liable as a shareholder.
(b) An executor, administrator, conservator, guardian, trustee, assignee for the benefit of creditors, or receiver is not personally liable as a holder of or subscriber to shares of a corporation.
(c) The estate and funds administered by an executor, administrator, conservator, guardian, trustee, assignee for the benefit of creditors, or receiver are liable for the full amount of the consideration for which the shares were or are to be issued.

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