Md. Code, Corporations and Associations § 5-508
This is the official text of Md. Code, Corporations and Associations § 5-508, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
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§5–508.
Official statutory text
(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.
(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.
(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.
(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.
(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.
(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.
Status: in_force · Read it on the official government site
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