Maryland Code, CORPORATIONS AND ASSOCIATIONS 2-205
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Terms Used In Maryland Code, CORPORATIONS AND ASSOCIATIONS 2-205
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- 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) For a corporation incorporated on or after October 1, 1995, unless the charter expressly grants such rights to the stockholder, a stockholder does not have any preemptive right to subscribe to:
(1) Any additional issue of stock; or
(2) Any security convertible into an additional issue of stock.
(b) For a corporation incorporated before October 1, 1995, a stockholder shall have preemptive rights as and to the extent in existence before October 1, 1995, unless and until expressly changed or terminated by charter amendment.
(c) (1) A stockholder to whom a preemptive right has been granted may waive the preemptive right.
(2) A written waiver of a preemptive right is irrevocable even though it is not supported by consideration.