Home Table of Contents

§ 2-308. Uses of surplus

West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2009

West's Annotated Code of Maryland
Corporations and Associations
Title 2. Corporations in General--Formation, Organization, and Operation (Refs & Annos)
Subtitle 3. Capital Accounts, Dividends, and Retirement of Shares (Refs & Annos)
Effective: October 1, 2009
MD Code, Corporations and Associations, § 2-308
§ 2-308. Uses of surplus
Currentness
In general
(a) Subject to the limitations of subsection (b) of this section, any surplus which arises from a reduction of stated capital becomes capital surplus and may be made the basis of:
(1) A distribution or payment to stockholders; and
(2) A reduction of the liability of stockholders whose shares of stock are not fully paid.
Requirement for net assets which remain
(b) Except as provided in § 2-311(a)(2) of this subtitle, the net assets of the corporation which remain after a distribution, payment, or reduction of liability shall be at least equal to the aggregate preferential amount payable in the event of voluntary liquidation to the holders of all stock having rights preferred to the rights of holders who received the distribution, payment, or whose liability was reduced.

Credits

Added by Acts 1975, c. 311, § 2, eff. July 1, 1975. Amended by Acts 2009, c. 295, § 1, eff. Oct. 1, 2009; Acts 2009, c. 296, § 1, eff. Oct. 1, 2009.
Formerly Art. 23, § 36.
MD Code, Corporations and Associations, § 2-308, MD CORP & ASSNS § 2-308
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.
End of Document