2010 Maryland Code
CORPORATIONS AND ASSOCIATIONS
TITLE 2 - CORPORATIONS IN GENERAL - FORMATION, ORGANIZATION, AND OPERATION
Subtitle 2 - Issuance of Securities
Section 2-205 - Preemptive rights.
§ 2-205. Preemptive rights.
(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.
[An. Code 1957, art. 23, § 30; 1975, ch. 311, § 2; 1995, ch. 449; 2008, ch. 292.]
Disclaimer: These codes may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
