2013 Maryland Code
CORPORATIONS AND ASSOCIATIONS
§ 5-5A-08 - Limitation on stock ownership; member's withdrawal or disposal of interest; classes of ownership; stock conversion; termination of nonstock voting membership

(a) Share limitation. -- A cooperative may limit in its articles of incorporation the number of shares of stock that a person may hold.

(b) Member's withdrawal or disposal of interest. -- If a member desires to withdraw from a consumer cooperative or dispose of any or all of the member's interest in the cooperative, the directors of the cooperative have the option to purchase that interest by paying the par value or book value, whichever is less, of any or all of the interest offered.

(c) Sale of interest to eligible purchaser. -- If the cooperative fails, within 60 days of the original offer, to purchase all or any part of the interest offered, the member may sell the unpurchased interest to a purchaser who is eligible for membership in the cooperative.

(d) Nonvoting capital stock or nonstock voting membership. -- A consumer cooperative may provide in its articles of incorporation for a class of nonvoting capital stock or a class of nonstock voting membership.

(e) Stock conversion. -- A consumer cooperative organized with voting stock may amend its articles of incorporation to provide for conversion of its voting stock at par value, to nonstock voting memberships. When that conversion occurs, voting stock shall convert to nonvoting capital stock of par value or, at the holder's election, to a nonstock voting membership.

(f) Termination of nonstock voting membership. -- A nonstock voting membership shall be continuing unless terminated by:

(1) A written request from the member; or

(2) The member's failure to comply with the articles of incorporation or bylaws of the cooperative after receiving notice as required in the bylaws.