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§ 5-418. Charter provisions expanding or limiting liability of directors or officers

West's Annotated Code of MarylandCourts and Judicial Proceedings

West's Annotated Code of Maryland
Courts and Judicial Proceedings
Title 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)
Subtitle 4. Immunities and Prohibited Actions--Businesses, Associations, and Charities (Refs & Annos)
MD Code, Courts and Judicial Proceedings, § 5-418
§ 5-418. Charter provisions expanding or limiting liability of directors or officers
Currentness
In general
(a) The charter, as defined under § 1-101 of the Corporations and Associations Article, of a Maryland corporation may include any provision expanding or limiting the liability of its directors and officers to the corporation or its stockholders for money damages, but may not include any provision that restricts or limits the liability of its directors or officers to the corporation or its stockholders:
(1) To the extent that it is proved that the person actually received an improper benefit or profit in money, property, or services for the amount of the benefit or profit in money, property, or services actually received;
(2) To the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or
(3) With respect to any action described in subsection (b) of this section.
Actions against banking institutions, credit unions, or savings and loan associations
(b) This section does not apply to an action brought by or on behalf of a State governmental entity, receiver, conservator, or depositor against a director or officer of:
(1) A banking institution as defined in § 1-101 of the Financial Institutions Article;
(2) A credit union as described in § 6-301 of the Financial Institutions Article;
(3) A savings and loan association as defined in § 8-101 of the Financial Institutions Article; or
(4) A subsidiary of a banking institution, credit union, or savings and loan association described in this subsection.
Liability in capacity as director or officer
(c) This section may not be construed to affect the liability of a person in any capacity other than the person's capacity as a director or officer.

Credits

Added as Courts and Judicial Proceedings § 5-349 by Acts 1990, c. 546, § 3, eff. Oct. 1, 1990. Renumbered as Courts and Judicial Proceedings § 5-418 by Acts 1997, c. 14, § 9, eff. April 8, 1997. Amended by Acts 2001, c. 147, § 9, eff. Oct. 1, 2001; Acts 2001, c. 148, § 9, eff. Oct. 1, 2001.
MD Code, Courts and Judicial Proceedings, § 5-418, MD CTS & JUD PRO § 5-418
Current through legislation effective through June 1, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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