§ 5-508
166 words·~1 min read·
/md/corporations-and-associations/5-508·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–508.
(a)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)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)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.