§ 5-419. Real estate investment trustees or shareholders
West's Annotated Code of MarylandCourts and Judicial Proceedings
MD Code, Courts and Judicial Proceedings, § 5-419
§ 5-419. Real estate investment trustees or shareholders
(a) Subject to the provisions of subsection (b) of this section, a shareholder or trustee of a real estate investment, defined under Title 8, Subtitle 1 of the Corporations and Associations Article, is not personally liable for the obligations of the real estate investment trust.
(b) If a trustee otherwise would be liable, the provisions of subsection (a) of this section do not relieve the trustee from any liability to the trust or its security holders for any act that constitutes:
(c)(1) Except as provided in paragraph (2) of this subsection, the declaration of trust of a real estate investment trust may include any provision expanding or limiting the liability of its trustees and officers to the trust or its shareholders for money damages.
(ii) 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.
Credits
Added as Courts and Judicial Proceedings § 5-350 by Acts 1990, c. 546, § 3, eff. Oct. 1, 1990. Amended by Acts 1992, c. 622, § 1, eff. Oct. 1, 1992. Renumbered as Courts and Judicial Proceedings § 5-419 by Acts 1997, c. 14, § 9, eff. April 8, 1997.
MD Code, Courts and Judicial Proceedings, § 5-419, MD CTS & JUD PRO § 5-419
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document |