Texas Fiduciary Litigator: Shareholder Agreements Are Very Powerful in Texas: Parties Should Carefully Review Those Agreements Before Obtaining Stock in a Corporation (August 20, 2021)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, discusses Ritchie v. Rupe, 443 S.W.3d 856, 871 (Tex. 2014).

(a) The shareholders of a corporation may enter into an agreement that: (1) restricts the discretion or powers of the board of directors; (2) eliminates the board of directors and authorizes the business and affairs of the corporation to be managed, wholly or partly, by one or more of its shareholders or other persons; (3) establishes the individuals who shall serve as directors or officers of the corporation; (4) determines the term of office, manner of selection or removal, or terms or conditions of employment of a director, officer, or other employee of the corporation, regardless of the length of employment;…

To see the full article, click: “Shareholder Agreements Are Very Powerful in Texas: Parties Should Carefully Review Those Agreements Before Obtaining Stock in a Corporation”

To download the full opinion, click: “Shareholder Agreements Are Very Powerful in Texas: Parties Should Carefully Review Those Agreements Before Obtaining Stock in a Corporation (August 20, 2021)”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.