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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 3. CAPITAL ACCOUNTS, DIVIDENDS, AND RETIREMENT OF SHARES |
§ 2-301. "Distribution" defined
Latest version.
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(a) In general. --
(1) In this subtitle, "distribution" means:
(i) A direct or indirect transfer of money or other property of the corporation in respect of any of its shares; or
(ii) An incurrence or forgiveness of indebtedness by a corporation to or for the benefit of the corporation's stockholders in respect of any of its shares.
(2) "Distribution" does not include a stock dividend or stock split authorized in accordance with § 2-309(c) of this subtitle.
(b) Form. -- A distribution may be in the form of:
(1) A declaration or payment of a dividend;
(2) A purchase, redemption, whether or not at the option of the corporation or the stockholders, or other acquisition of shares; or
(3) An issuance of evidence of indebtedness.