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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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CORPORATIONS AND ASSOCIATIONS |
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TITLE 2. CORPORATIONS IN GENERAL -- FORMATION, ORGANIZATION, AND OPERATION |
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SUBTITLE 2. ISSUANCE OF SECURITIES |
§ 2-205. Preemptive rights
Latest version.
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(a) Corporations incorporated on or after October 1, 1995. -- For a corporation incorporated on or after October 1, 1995, unless the charter expressly grants such rights to the stockholder, a stockholder does not have any preemptive right to subscribe to:
(1) Any additional issue of stock; or
(2) Any security convertible into an additional issue of stock.
(b) Corporations incorporated before October 1, 1995. -- For a corporation incorporated before October 1, 1995, a stockholder shall have preemptive rights as and to the extent in existence before October 1, 1995, unless and until expressly changed or terminated by charter amendment.
(c) Waiver. --
(1) A stockholder to whom a preemptive right has been granted may waive the preemptive right.
(2) A written waiver of a preemptive right is irrevocable even though it is not supported by consideration.