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§ 2-416. Corporate assistance to officers and employees

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 4. Directors and Officers (Refs & Annos)
MD Code, Corporations and Associations, § 2-416
§ 2-416. Corporate assistance to officers and employees
Currentness
When permitted
(a) A corporation may lend money to, guarantee an obligation of, or otherwise assist an officer or other employee of the corporation or of its direct or indirect subsidiary, including an officer or employee who is a director of the corporation or the subsidiary, if the loan, guarantee, or assistance:
(1) In the judgment of the directors, reasonably may be expected to benefit the corporation; or
(2) Is an advance made against indemnification in accordance with § 2-418(f) of this subtitle.
Permitted conditions
(b) The loan, guarantee, or other assistance may be:
(1) With or without interest;
(2) Unsecured; or
(3) Secured in any manner that the board of directors approves, including a pledge of the stock of the corporation.

Credits

Added by Acts 1975, c. 311, § 2, eff. July 1, 1975. Amended by Acts 1976, c. 567, §§ 1, 4.
Formerly Art. 23, § 62.
MD Code, Corporations and Associations, § 2-416, MD CORP & ASSNS § 2-416
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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