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§ 3-801. Definitions

West's Annotated Code of MarylandCorporations and Associations

West's Annotated Code of Maryland
Corporations and Associations
Title 3. Corporations in General--Extraordinary Actions (Refs & Annos)
Subtitle 8. Corporations and Real Estate Investment Trusts--Unsolicited Takeovers
MD Code, Corporations and Associations, § 3-801
§ 3-801. Definitions
Currentness
In general
(a) In this subtitle the following words have the meanings indicated.
Acquiring person
(b) “Acquiring person” means a person who is seeking to acquire control of a corporation.
Act
(c) “Act” includes an omission or failure to act.
Affiliate
(d) “Affiliate” means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, a specified person.
Associate
(e) “Associate”, when used to indicate a relationship with any person, means:
(1) Any corporation or organization (other than the corporation or a subsidiary of the corporation) of which such person is an officer, director, or partner or is, directly or indirectly, the beneficial owner of 10 percent or more of any class of equity securities;
(2) Any trust or other estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or in a similar fiduciary capacity; and
(3) Any relative or spouse of such person, or any relative of such spouse, who has the same principal residence as such person or who is a director or officer of the corporation or any of its affiliates.
Beneficial owner
(f) “Beneficial owner”, when used with respect to any stock, means a person:
(1) That, individually or with any of its affiliates or associates, beneficially owns stock, directly or indirectly; or
(2) That, individually or with any of its affiliates or associates, has:
(i) The right to acquire stock (whether such right is exercisable immediately or only after the passage of time), pursuant to any agreement, arrangement, or understanding or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; or
(ii) The right to vote stock pursuant to any agreement, arrangement, or understanding; or
(3) That has any agreement, arrangement, or understanding for the purpose of acquiring, holding, voting, or disposing of stock with any other person that beneficially owns, or whose affiliates or associates beneficially own, directly or indirectly, such shares of stock.
Charter
(g) “Charter” includes the declaration of trust of a real estate investment trust.
Control
(h) “Control”, including the terms “controlling”, “controlled by”, and “under common control with”, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise, and the beneficial ownership of 10 percent or more of the votes entitled to be cast by a corporation's stock creates a presumption of control.
Corporation
(i) “Corporation” includes a real estate investment trust as defined in Title 8 of this article.
Director
(j) “Director” includes a trustee of a real estate investment trust.
Equity security
(k) “Equity security” means:
(1) Any stock or similar security, certificate of interest, or participation in any profit sharing agreement, voting trust certificate, or certificate of deposit for an equity security;
(2) Any security convertible, with or without consideration, into an equity security, or any warrant or other security carrying any right to subscribe to or purchase an equity security; or
(3) Any put, call, straddle, or other option or privilege of buying an equity security from or selling an equity security to another without being bound to do so.
Real estate investment trust
(l) “Real estate investment trust” has the meaning stated in Title 8 of this article.
Stockholder
(m) “Stockholder” includes a shareholder of a real estate investment trust.
Subsidiary
(n) “Subsidiary” means any corporation of which stock having a majority of the votes entitled to be cast is owned, directly or indirectly, by the corporation.

Credits

Added by Acts 1999, c. 300, § 1, eff. June 1, 1999.
MD Code, Corporations and Associations, § 3-801, MD CORP & ASSNS § 3-801
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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