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§ 2-304. Permitted uses of capital surplus

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, § 2-304
§ 2-304. Permitted uses of capital surplus
In general
(a) By resolution of its board of directors, a corporation may apply any part of its capital surplus for:
(1) The reduction or elimination of a corporate deficit arising from a loss, however incurred, or from diminution in the value of its assets, but only after earned surplus is exhausted; or
(2) Any other proper corporate purpose.
Disclosure
(b) An application of capital surplus under subsection (a) of this section shall be disclosed to the stockholders of the corporation in its next annual report.

Credits

Added by Acts 1975, c. 311, § 2, eff. July 1, 1975.
Formerly Art. 23, § 25.
MD Code, Corporations and Associations, § 2-304, MD CORP & ASSNS § 2-304
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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