Maryland Statutes
Subtitle 3 - Capital Accounts, Dividends, and Retirement of Shares
Section 2-301 - Distribution

(a)    (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.

Structure Maryland Statutes