There is a newer version
of
this Section
2017 Maryland Code
Corporations and Associations
Title 2 - Corporations in General -- Formation, Organization, and Operation
Subtitle 2 - Issuance of Securities
§ 2-201. Power to issue stock and convertible securities; effect of authorization
Universal Citation: MD Corp & Assn Code § 2-201 (2017)
- (a) Power to issue stock and convertible securities. -- Subject to the provisions of this subtitle, a corporation from time to time may issue:
- (1) Stock of any class authorized by its charter; and
- (2) Securities convertible into stock of any class authorized by its charter.
- (b) Effect of authorization of convertible securities. -- The authorization of stock convertible into other stock or securities convertible into stock constitutes an authorization of the stock into which the stock or securities are convertible, without further specific authorization in the charter.
- (c) Stockholder rights plan. --
- (1) The board of directors of a corporation may, in its sole discretion:
- (i) Set the terms and conditions of rights, options, or warrants under a stockholder rights plan; and
- (ii) Issue rights, options, or warrants under a stockholder rights plan to designated persons or classes of persons.
- (2) The rights, options, or warrants under paragraph (1) of this subsection may, in the sole discretion of the board of directors, include any limitation, restriction, or condition that:
- (i) Precludes, limits, invalidates, or voids the exercise, transfer, or receipt of the rights, options, or warrants by designated persons or classes of persons in specified circumstances; or
- (ii) Limits for a period not to exceed 180 days the power of a future director, as defined in the stockholder rights plan, to vote for the redemption, modification, or termination of the rights, options, or warrants.
- (1) The board of directors of a corporation may, in its sole discretion:
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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
