§ 2–301
Statutes in effect as of October 1, 2026.
Md. Code Ann., Corps. & Ass'ns § 2-301 (2026)
Title 2. Corporations in General -- Formation, Organization, and Operation
Subtitle 3. Capital Accounts, Dividends, and Retirement of Shares
§ 2–301LinkCopy Citation
(a)
(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)
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.