§ 5–508
Statutes in effect as of October 1, 2026.
Md. Code Ann., Corps. & Ass'ns § 5-508 (2026)
Title 5. Special Types of Corporations
Subtitle 5. Agricultural Cooperatives
§ 5–508LinkCopy Citation
(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.