Section 2-604 - Charter amendment - Stock outstanding or subscribed for. - Maryland Statutes

§ 2-604. Charter amendment - Stock outstanding or subscribed for.
 

(a)  Applicability.- This section does not apply to a charter amendment by the board of directors in accordance with § 2-105(a)(13) or § 2-309(e) of this title. 

(b)  General rule.- If there is any stock outstanding or subscribed for and entitled to be voted on the charter amendment, it shall be approved as provided in this section. 

(c)  Directors' action.- Except as provided in § 2-112 of this title, the board of directors of a corporation proposing a charter amendment shall: 

(1) Adopt a resolution which sets forth the proposed amendment and declares that it is advisable; and 

(2) Direct that the proposed amendment be submitted for consideration at either an annual or a special meeting of the stockholders. 

(d)  Notice to stockholders.-  

(1) Notice which states that a purpose of the meeting will be to act on the proposed amendment shall be given by the corporation in the manner required by Subtitle 5 of this title to: 

(i) Each stockholder entitled to vote on the proposed amendment; and 

(ii) Each stockholder not entitled to vote on the proposed amendment if the contract rights of his stock, as expressly set forth in the charter, would be altered by the amendment. 

(2) The notice shall: 

(i) Include a copy of the amendment or a summary of the changes it will effect; or 

(ii) 1. Identify a website at which the amendment or a summary of the changes it will effect may be accessed; and 

2. Include a telephone number or an address where the stockholder may request a paper copy of the amendment or summary without charge. 

(e)  Stockholder approval.- The proposed amendment shall be approved by the stockholders of the corporation by the affirmative vote of two thirds of all the votes entitled to be cast on the matter. 
 

[An. Code 1957, art. 23, § 11; 1975, ch. 311, § 2; 1999, chs. 395, 453; 2004, ch. 516; 2010, chs. 95, 96.]