Statement of Operation As Close Corporation

Sec. 21.718. STATEMENT OF OPERATION AS CLOSE CORPORATION. (a) On or after the formation of a close corporation or adoption of close corporation status, a close corporation that begins to conduct its business and affairs under a shareholders' agreement that has become effective shall promptly execute and file with the secretary of state a statement of operation as a close corporation in accordance with Chapter 4. (b) The statement required by Subsection (a) must: (1) contain the name of the close corporation; (2) state that the close corporation is being operated and its business and affairs are being conducted under the terms of a shareholders' agreement under this subchapter; and (3) contain the date the operation of the corporation began. (c) A statement of operation as a close corporation shall be executed by an officer on behalf of the corporation. (d) On the filing of the statement of operation as a close corporation, the fact that the close corporation is being operated and its business and affairs are being conducted under the terms of a shareholders' agreement becomes a matter of public record. Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.