Section 5-508 - Stock. - Maryland Statutes

§ 5-508. Stock.
 

(a)  Power of cooperative over its stock and membership.- A cooperative may: 

(1) Limit the sale of its common stock or membership to persons designated or described in the bylaws; 

(2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote; 

(3) Limit the number of shares of stock which a person may hold; and 

(4) Reserve to the board of directors: 

(i) The option to purchase for the cooperative the stock offered by any stockholder; and 

(ii) The right to redeem the stock of any stockholder. 

(b)  Exercise of option to purchase or redeem stock.- If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value. 

(c)  Restrictions.- A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is: 

(1) Set forth in the charter; and 

(2) Printed on any stock subscription document and the stock certificate. 
 

[An. Code 1957, art. 23, § 365; 1975, ch. 311, § 2.]