Maryland Statutes
Subtitle 2 - Rights of Objecting Stockholders
Section 3-202 - Right to Fair Value of Stock

(a)    Except as provided in subsection (c) of this section, a stockholder of a Maryland corporation has the right to demand and receive payment of the fair value of the stockholder’s stock from the successor if:
        (1)    The corporation consolidates or merges with another corporation;
        (2)    The stockholder’s stock is to be acquired in a share exchange;
        (3)    The corporation transfers its assets in a manner requiring action under § 3–105(e) of this title;
        (4)    The corporation amends its charter in a way which alters the contract rights, as expressly set forth in the charter, of any outstanding stock and substantially adversely affects the stockholder’s rights, unless the right to do so is reserved by the charter of the corporation;
        (5)    The transaction is governed by § 3–602 of this title or exempted by § 3–603(b) of this title; or
        (6)    The corporation is converted in accordance with § 3–901 of this title.
    (b)    (1)    Fair value is determined as of the close of business:
            (i)    With respect to a merger under § 3–106 or § 3–106.1 of this title, on the day notice is given or waived under § 3–106 or § 3–106.1 of this title; or
            (ii)    With respect to any other transaction, on the day the stockholders voted on the transaction objected to.
        (2)    Except as provided in paragraph (3) of this subsection, fair value may not include any appreciation or depreciation which directly or indirectly results from the transaction objected to or from its proposal.
        (3)    In any transaction governed by § 3–602 of this title or exempted by § 3–603(b) of this title, fair value shall be value determined in accordance with the requirements of § 3–603(b) of this title.
    (c)    Unless the transaction is governed by § 3–602 of this title or is exempted by § 3–603(b) of this title, a stockholder may not demand the fair value of the stockholder’s stock and is bound by the terms of the transaction if:
        (1)    Except as provided in subsection (d) of this section, any shares of the class or series of the stock are listed on a national securities exchange:
            (i)    With respect to a merger under § 3–106 or § 3–106.1 of this title, on the date notice is given or waived under § 3–106 or § 3–106.1 of this title; or
            (ii)    With respect to any other transaction, on the record date for determining stockholders entitled to vote on the transaction objected to;
        (2)    The stock is that of the successor in a merger, unless:
            (i)    The merger alters the contract rights of the stock as expressly set forth in the charter, and the charter does not reserve the right to do so; or
            (ii)    The stock is to be changed or converted in whole or in part in the merger into something other than either stock in the successor or cash, scrip, or other rights or interests arising out of provisions for the treatment of fractional shares of stock in the successor;
        (3)    The stock is not entitled, other than solely because of § 3–106 or § 3–106.1 of this title, to be voted on the transaction or the stockholder did not own the shares of stock on the record date for determining stockholders entitled to vote on the transaction;
        (4)    The charter provides that the holders of the stock are not entitled to exercise the rights of an objecting stockholder under this subtitle; or
        (5)    The stock is that of an open–end investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and the value placed on the stock in the transaction is its net asset value.
    (d)    With respect to a merger, consolidation, or share exchange, a stockholder of a Maryland corporation who otherwise would be bound by the terms of the transaction under subsection (c)(1) of this section may demand the fair value of the stockholder’s stock if:
        (1)    In the transaction, stock of the corporation is required to be converted into or exchanged for anything of value except:
            (i)    Stock of the corporation surviving or resulting from the merger, consolidation, or share exchange, stock of any other corporation, or depositary receipts for any stock described in this item;
            (ii)    Cash in lieu of fractional shares of stock or fractional depositary receipts described in item (i) of this item; or
            (iii)    Any combination of the stock, depositary receipts, and cash in lieu of fractional shares or fractional depositary receipts described in items (i) and (ii) of this item;
        (2)    The directors and executive officers of the corporation were the beneficial owners, in the aggregate, of 5 percent or more of the outstanding voting stock of the corporation at any time within the 1–year period ending on:
            (i)    The day the stockholders voted on the transaction objected to; or
            (ii)    With respect to a merger under § 3–106 or § 3–106.1 of this title, the effective date of the merger; and
        (3)    Unless the stock is held in accordance with a compensatory plan or arrangement approved by the board of directors of the corporation and the treatment of the stock in the transaction is approved by the board of directors of the corporation, any stock held by persons described in item (2) of this subsection, as part of or in connection with the transaction and within the 1–year period described in item (2) of this subsection, will be or was converted into or exchanged for stock of a person, or an affiliate of a person, who is a party to the transaction on terms that are not available to all holders of stock of the same class or series.
    (e)    If directors or executive officers of the corporation are beneficial owners of stock in accordance with § 3–201(d)(2)(i) of this subtitle, the stock is considered outstanding for purposes of determining beneficial ownership by a person under subsection (d)(2) of this section.