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§ 5-508. Stock

MD Corp & Assn Code § 5-508 (2019) (N/A)
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(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.

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§ 5-507. Corporation may be converted into cooperative
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§ 5-509. Payment by subscriber before certificate of stock or membership issued