Section 2-310 - Acquisition of own stock - In general. - Maryland Statutes

§ 2-310. Acquisition of own stock - In general.
 

(a)  Authority; status of shares; voting rights.-  

(1) Subject to the provisions of its charter and § 2-311 of this subtitle, if authorized by its board of directors, a corporation may acquire the corporation's own shares. 

(2) Shares acquired under paragraph (1) of this subsection constitute authorized but unissued shares. 

(3) Shares of a corporation's own stock acquired by the corporation between the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders and the time of the meeting may be voted at the meeting by the holder of record as of the record date and shall be counted in determining the total number of outstanding shares entitled to be voted at the meeting. 

(b)  Reduction of number of authorized shares; articles of amendment.- If the charter prohibits the issuance of acquired shares, the number of authorized shares is reduced by the number of shares acquired, effective upon the filing with the Department of articles supplementary which shall set forth: 

(1) The name of the corporation; 

(2) The number of outstanding shares of stock of the corporation that have been acquired by the corporation and that by their terms may not be reissued, and the class and series of the shares; 

(3) The number of authorized shares of the corporation remaining after the acquisition of outstanding shares, itemized by class and series; and 

(4) The fact that no amendment to the charter is effected by the articles supplementary, their sole purpose being to record the reduction of authorized shares resulting from the acquisition of shares that by the terms of the existing charter may not be reissued. 
 

[1988, ch. 280, § 1; ch. 281, § 1; 1992, ch. 621; 1999, ch. 459, § 2.]