Section 3-203 - Procedure by stockholder. - Maryland Statutes

§ 3-203. Procedure by stockholder.
 

(a)  Specific duties.- A stockholder of a corporation who desires to receive payment of the fair value of the stockholder's stock under this subtitle: 

(1) Shall file with the corporation a written objection to the proposed transaction: 

(i) With respect to a merger under § 3-106 of this title of a 90 percent or more owned subsidiary with or into its parent corporation, within 30 days after notice is given or waived under § 3-106 of this title; or 

(ii) With respect to any other transaction, at or before the stockholders' meeting at which the transaction will be considered or, in the case of action taken under § 2-505(b) of this article, within 10 days after the corporation gives the notice required by § 2-505(b) of this article; 

(2) May not vote in favor of the transaction; and 

(3) Within 20 days after the Department accepts the articles for record, shall make a written demand on the successor for payment for the stockholder's stock, stating the number and class of shares for which the stockholder demands payment. 

(b)  Failure to comply with section.- A stockholder who fails to comply with this section is bound by the terms of the consolidation, merger, share exchange, transfer of assets, or charter amendment. 
 

[An. Code 1957, art. 23, § 73; 1975, ch. 311, § 2; 1976, ch. 567, § 2; 1999, ch. 395; 2000, ch. 642; 2007, ch. 5, § 7.]