(a) A professional corporation may issue stock, rights, and options to purchase stock to:
(1) An individual who is authorized by law in this or another state to render a professional service named in the corporation’s articles of incorporation;
(2) A general partnership in which all the partners are qualified persons with respect to the professional corporation and in which at least one partner is authorized by law in this State to render a professional service named in the corporation’s articles of incorporation; and
(3) A professional corporation, domestic or foreign, provided that the professional corporation receiving the stock is organized to perform the same professional service as the professional corporation issuing the stock.
(b) (1) If a licensing unit with jurisdiction over a profession considers it necessary to prevent a violation of the ethical standards of the profession, the unit may, by regulation, restrict or condition, or revoke in part, the authority of a professional corporation to issue stock subject to its jurisdiction.
(2) A regulation adopted under this subsection does not, of itself, make a stockholder of a professional corporation a disqualified person at the time the regulation becomes effective.
(c) Stock issued in violation of this section or of a regulation adopted under this section is void from the date issued.
Structure Maryland Statutes
Title 5 - Special Types of Corporations
Subtitle 1 - Professional Service Corporations
Section 5-102 - Single or Multiple Professions; Corporate Form
Section 5-104 - Limitation on Activities; Investments
Section 5-105 - Professional Service to Be Performed Through Licensed Individuals
Section 5-106 - Corporate Name -- General Requirements
Section 5-107 - Inclusion of Stockholder's Surname; Exception
Section 5-108 - Certificate of Authorization for Use of Corporate Name
Section 5-109 - Issuance of Stock
Section 5-110 - Statement on Stock Certificate
Section 5-111 - Transfer of Stock
Section 5-112 - Electing to Be Professional Corporation
Section 5-114 - Acquisition of Stock Upon Death or Disqualification of Stockholder; Proceedings
Section 5-115 - Proceeding to Determine Fair Value
Section 5-116 - Assessment of Costs and Fees in Appraisal Proceeding
Section 5-117 - Directors and Officers
Section 5-118 - Proxy; Voting Trusts
Section 5-119 - Relationship With Client or Patient
Section 5-120 - Privileged Communications
Section 5-121 - Liability for Negligent or Wrongful Act
Section 5-123 - Cessation in Rendering Professional Services
Section 5-124 - Proceeding to Dissolve Professional Corporation
Section 5-125 - Foreign Professional Corporation
Section 5-126 - Foreign Professional Corporation -- Required Information
Section 5-127 - Foreign Professional Corporation -- Revocation of Certificate
Section 5-128 - Adoption of Regulations
Section 5-129 - Jurisdiction Not Restricted; Effect on Standards of Professional Conduct
Section 5-130 - Repeal of Statute by Enactment
Section 5-132 - Suspension or Revocation of Articles of Incorporation