Section 2-304 - Application of capital surplus. - Maryland Statutes

§ 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.]