§ 2-703. Effective date of ratification
West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2022
Effective: October 1, 2022
MD Code, Corporations and Associations, § 2-703
§ 2-703. Effective date of ratification
(a)(1) Except as provided in paragraph (2) of this subsection, ratification of a defective corporate act becomes effective on the date that the board of directors adopts a resolution under § 2-702(a) of this subtitle or, if required by this subtitle, the date that stockholders adopt a resolution under § 2-702(b) of this subtitle.
(b) Beginning at the time ratification is effective and without regard to the 120-day period during which a claim may be brought under § 2-707(b) of this subtitle:
(1) A defective corporate act ratified in accordance with this subtitle is not void or voidable as a result of the failure of authorization identified in a board action under § 2-702(a) of this subtitle and shall be deemed a valid corporate act effective as of the date of the defective corporate act;
(3) Any corporate act taken after a defective corporate act ratified in accordance with this subtitle in reliance on the defective corporate act having been validly effected, and any subsequent defective corporate act resulting from the original defective corporate act, shall be valid as of the time the act was taken.
Credits
Added by Acts 2022, c. 289, § 1, eff. Oct. 1, 2022; Acts 2022, c. 290, § 1, eff. Oct. 1, 2022.
MD Code, Corporations and Associations, § 2-703, MD CORP & ASSNS § 2-703
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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