2013 Maryland Code
CORPORATIONS AND ASSOCIATIONS
§ 2-301 - "Distribution" defined


MD Corp & Assn Code § 2-301 (2013) What's This?

§2-301.

(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.

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