2010 Maryland Code
CORPORATIONS AND ASSOCIATIONS
TITLE 2 - CORPORATIONS IN GENERAL - FORMATION, ORGANIZATION, AND OPERATION
Subtitle 3 - Capital Accounts, Dividends, and Retirement of Shares
Section 2-304 - Application of capital surplus.
§ 2-304. Application of capital surplus.
(a) Permitted uses.- By resolution of its board of directors, a corporation may apply any part of its capital surplus for:
(1) The reduction or elimination of a corporate deficit arising from a loss, however incurred, or from diminution in the value of its assets, but only after earned surplus is exhausted; or
(2) Any other proper corporate purpose.
(b) Disclosure to stockholders.- An application of capital surplus under subsection (a) of this section shall be disclosed to the stockholders of the corporation in its next annual report.
[An. Code 1957, art. 23, § 25; 1975, ch. 311, § 2.]
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