This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Convertible Note Cap Table in Texas

Under Texas law, convertible note cap table treatment is governed by the provisions of Tex. Bus. Orgs. Code § 21.151, which sets out the statutory framework for how convertible instruments interact with equity ownership calculations. This section establishes the legal basis for determining the conversion terms and resulting equity allocation when a note converts, but does not prescribe a single formula or fixed percentage. The precise outcome depends on the specific conversion mechanics and other factors detailed in the statute. The official source at https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm contains the exact statutory language. The worked example below illustrates how the rule applies in practice. Use the calculator to estimate your own cap table scenario based on your specific facts.

Governing authority

In Texas, the convertible note cap table rule is set by Tex. Bus. Orgs. Code § 21.151. The verified packet cites Tex. Bus. Orgs. Code § 21.151 (https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm).

Texas convertible note cap table: governed by Tex. Bus. Orgs. Code § 21.151. The verified packet cites Tex. Bus. Orgs. Code § 21.151 (https://statutes.capitol.texas.gov/Docs/BO/htm/BO.21.htm).

Estimate your own result: every situation has exceptions that can change the outcome. Use the convertible note cap table calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.