Md. Code, Corporations and Associations § 4-503
This is the official text of Md. Code, Corporations and Associations § 4-503, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§4–503.
Official statutory text
(a) (1) In this section, “transfer” means the transfer of any interest in the stock of a close corporation, except:
(i) A transfer by operation of law to a personal representative, trustee in bankruptcy, receiver, guardian, or similar legal representative;
(ii) The acquisition of a lien or power of sale by an attachment, levy, or similar procedure; or
(iii) The creation or assignment of a security interest.
(2) A foreclosure sale or other transfer by a person who acquired his interest or power in a transaction described in paragraph (1) of this subsection is a transfer subject to all the provisions of this section. For purposes of the transfer, the person effecting the foreclosure sale or other transfer shall be treated as and have the rights of a holder of the stock under this section and § 4-602(b) of this title.
(b) A transfer of the stock of a close corporation is invalid unless:
(1) Every stockholder of the corporation consents to the transfer in writing within the 90 days before the date of the transfer; or
(2) The transfer is made under a provision of a unanimous stockholders’ agreement permitting the transfer to the corporation or to or in trust for the principal benefit of:
(i) One or more of the stockholders or security holders of the corporation or their wives, children, or grandchildren; or
(ii) One or more persons named in the agreement.
(i) A transfer by operation of law to a personal representative, trustee in bankruptcy, receiver, guardian, or similar legal representative;
(ii) The acquisition of a lien or power of sale by an attachment, levy, or similar procedure; or
(iii) The creation or assignment of a security interest.
(2) A foreclosure sale or other transfer by a person who acquired his interest or power in a transaction described in paragraph (1) of this subsection is a transfer subject to all the provisions of this section. For purposes of the transfer, the person effecting the foreclosure sale or other transfer shall be treated as and have the rights of a holder of the stock under this section and § 4-602(b) of this title.
(b) A transfer of the stock of a close corporation is invalid unless:
(1) Every stockholder of the corporation consents to the transfer in writing within the 90 days before the date of the transfer; or
(2) The transfer is made under a provision of a unanimous stockholders’ agreement permitting the transfer to the corporation or to or in trust for the principal benefit of:
(i) One or more of the stockholders or security holders of the corporation or their wives, children, or grandchildren; or
(ii) One or more persons named in the agreement.
Status: in_force · Read it on the official government site
Dealing with a business matter in Maryland?
See all Maryland Business lawyers
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.