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.