§ 2-301
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/md/corporations-and-associations/2-301·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§2–301.
(1)In this subtitle, “distribution” means:
(i)A direct or indirect transfer of money or other property of the corporation in respect of any of its shares; or
(ii)An incurrence or forgiveness of indebtedness by a corporation to or for the benefit of the corporation’s stockholders in respect of any of its shares.
(2)“Distribution” does not include a stock dividend or stock split authorized in accordance with § 2-309(c) of this subtitle.
(b)A distribution may be in the form of:
(1)A declaration or payment of a dividend;
(2)A purchase, redemption, whether or not at the option of the corporation or the stockholders, or other acquisition of shares; or
(3)An issuance of evidence of indebtedness.