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McKinney Texas Form 966: What You Should Know

For a limited liability company, the shareholder's petition may not be filed until it becomes a corporation (but it may be filed prior to the corporation becoming a corporation). See the FAQ “For a Limited Liability Company Form 966: Determining a Registered Person”, below. For a corporation without shares or an equity method of allocating votes, the corporation may vote “in person,” “by proxy” or other similar form of proxy before or after the annual meeting. See the FAQ “For a Corporation Without Shares Form 966: Determining a Registered Person”, below. A shareholder that has no shares or an equity method of allocating votes may not file a petition to dissolve or liquidate the corporation, but it can file a petition to vote or withdraw stock. See the FAQ “For a Corporation Without Shares Form 966: Determining a Registered Person”, below. A shareholder must file Form 966 in person, by proxy or proxy card. For a shareholder's vote, only shares that are owned may be voted on. The shareholder may not “vote by proxy” for the corporation or the member(s) of the corporation who have no shares. The form, Form 966, will be signed and filed with the shareholder's petition. A new shareholder or former shareholder must either file an original shareholder's consent with each such form or file it as an amended form, and the corporate records must note that one of the shareholder's shares was cancelled, transferred to a person other than a corporation, transferred to or for the benefit of a corporation, cancelled, transferred, or redeemed. An owner may not appoint a manager, assign a managerial contract or distribute shares of company stock except as provided for in the corporate charter. The manager, owner or an agent of the nonresident, is not a shareholder or former shareholder but a person or person holding a security interest in company stock is a shareholder or former shareholder and subject to the share conversion rules. For a shareholder or former shareholder to make changes in the way shareholders vote, he/she must sign the petition, and it must be filed with the corporate records.

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