On Apr. 2, MD LEG passed bill altering some definitions, emergencies.
MD LEG pass SB 400 (HB 749) to redefine certain terms, authorizes emergency bylaws and actions, limits liability for emergency actions, states when stock is outstanding.
Bill generally authorizes a corporation to adopt emergency bylaws, and establishes related provisions applicable to an emergency, as further defined in the bill.
Clarifies statutory provisions related to a corporation’s acquisition of its own stock.
Redefines principal office as one designated as such by limited liability company, corporation, limited liability partnership or domestic limited partnership.
Defines emergency variously and provides procedures for adopting emergency board meeting, notice of same, binding effect of emergency actions, quorum needed.
States when stock ceases to be outstanding, but right redemption payment remains.
Legislative History
On Jan. 18, 2024, bill introduced in Senate; on Mar. 14, 2024, bill pass Senate.
On Mar. 15, 2024, bill introduced in House; on Apr. 2, 2024, bill passed House.
Effectiveness
Upon approval by governor or veto override, SB400 will be effective Oct. 1, 2024.
May 2024 MD LEG Governor Approval
On May 9, 2024, MD LEG governor signed SB 400, HB 749; assigned Ch. 609, Ch. 608.
