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§ 5-508. Power over stock and membership

West's Annotated Code of MarylandCorporations and Associations

West's Annotated Code of Maryland
Corporations and Associations
Title 5. Special Types of Corporations (Refs & Annos)
Subtitle 5. Agricultural Cooperatives
MD Code, Corporations and Associations, § 5-508
§ 5-508. Power over stock and membership
Currentness
Powers
(a) A cooperative may:
(1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;
(2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote;
(3) Limit the number of shares of stock which a person may hold; and
(4) Reserve to the board of directors:
(i) The option to purchase for the cooperative the stock offered by any stockholder; and
(ii) The right to redeem the stock of any stockholder.
Option to purchase
(b) If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value.
Restrictions
(c) A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:
(1) Set forth in the charter; and
(2) Printed on any stock subscription document and the stock certificate.

Credits

Added by Acts 1975, c. 311, § 2, eff. July 1, 1975.
Formerly Art. 23, § 365.
MD Code, Corporations and Associations, § 5-508, MD CORP & ASSNS § 5-508
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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