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§ 2-301. Distribution

West's Annotated Code of MarylandCorporations and Associations

West's Annotated Code of Maryland
Corporations and Associations
Title 2. Corporations in General--Formation, Organization, and Operation (Refs & Annos)
Subtitle 3. Capital Accounts, Dividends, and Retirement of Shares (Refs & Annos)
MD Code, Corporations and Associations, § 2-301
§ 2-301. Distribution
Currentness
Definition
(a)(1) In this subtitle, “distribution” means:
(i) A direct or indirect transfer of money or other property of the corporation in respect of any of its shares; or
(ii) An incurrence or forgiveness of indebtedness by a corporation to or for the benefit of the corporation's stockholders in respect of any of its shares.
(2) “Distribution” does not include a stock dividend or stock split authorized in accordance with § 2-309(c) of this subtitle.
Form
(b) A distribution may be in the form of:
(1) A declaration or payment of a dividend;
(2) A purchase, redemption, whether or not at the option of the corporation or the stockholders, or other acquisition of shares; or
(3) An issuance of evidence of indebtedness.

Credits

Added by Acts 1988, c. 280, § 1; Acts 1988, c. 281, § 1. Amended by Acts 2003, c. 301, § 1, eff. June 1, 2003; Acts 2004, c. 25, § 5, eff. April 13, 2004.
MD Code, Corporations and Associations, § 2-301, MD CORP & ASSNS § 2-301
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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