§ 3-702. Voting rights of control shares
West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2021
Effective: October 1, 2021
MD Code, Corporations and Associations, § 3-702
§ 3-702. Voting rights of control shares
(a)(1) Holders of control shares of the corporation acquired in a control share acquisition have no voting rights with respect to the control shares except to the extent approved by the stockholders at a meeting held under § 3-704 of this subtitle by the affirmative vote of two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares.
Applicability to voting rights of shares of stocks if approved or exempted by provision in charter or bylaws
(b) This subtitle does not apply to the voting rights of shares of stock if the acquisition of the shares specifically, generally, or generally by types, as to specifically identified or unidentified existing or future stockholders or their affiliates or associates, has been approved or exempted by a provision contained in the charter or bylaws and adopted at any time before the acquisition of control shares.
(c) This subtitle does not apply to:
(3) A corporation registered under the Investment Company Act of 19401 as an open end investment company; or
(d) For the purposes of subsection (c)(2) of this section, all stockholders of a corporation that have executed an agreement to which the corporation is an executing party governing the purchase and sale of stock of the corporation or a voting trust agreement governing stock of the corporation shall be considered a single beneficial owner of the stock covered by the agreement.
(e) For the purposes of § 3-701 of this subtitle:
Credits
Added by Acts 1989, c. 51. Amended by Acts 2000, c. 642, § 1, eff. June 1, 2000; Acts 2010, c. 95, § 1, eff. June 1, 2010; Acts 2010, c. 96, § 1, eff. June 1, 2010; Acts 2021, c. 779, § 1, eff. Oct. 1, 2021; Acts 2021, c. 780, § 1, eff. Oct. 1, 2021.
Footnotes
Aug. 22, 1940, ch. 686, Title I, 54 Stat. 789, codified at 15 U.S.C.A. § 80a-1 et seq.
MD Code, Corporations and Associations, § 3-702, MD CORP & ASSNS § 3-702
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document |