Maryland Code, CORPORATIONS AND ASSOCIATIONS 2-304
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Terms Used In Maryland Code, CORPORATIONS AND ASSOCIATIONS 2-304
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(a) 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) 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.