Section 21.719 - Validity and Enforceability of Shareholders' Agreement(a) A shareholders' agreement executed in accordance with Section 21.715 is valid and enforceable notwithstanding:(1) the elimination of a board of directors;(2) any restriction imposed on the discretion or powers of the board of directors or other person empowered to manage the close corporation; and(3) that the effect of the shareholders' agreement is to treat the business and affairs of the close corporation as if the close corporation were a partnership or in a manner that would otherwise be appropriate only among partners.(b) A close corporation, a shareholder of the close corporation, or a party to a shareholders' agreement may initiate a proceeding to enforce the shareholders' agreement in accordance with Section 21.756.Tex. Bus. Org. Code § 21.719
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.