Section 2-301 - "Distribution" defined. - Maryland Statutes

§ 2-301. "Distribution" defined.
 

(a)  In general.-  

(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)  Form.- 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. 
 

[1988, ch. 280, § 1; ch. 281, § 1; 2003, ch. 301; 2004, ch. 25, § 5.]