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Maryland Code, Corporations and Associations § 5-118

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Only a qualified person may be appointed a proxy to vote stock of a professional corporation.

(b) A voting trust with respect to stock of a professional corporation is not valid unless all of the trustees of the trust are stockholders of the professional corporation.

(c) Stock in a professional corporation may not be transferred into a trust, unless:

(1) All settlors of the trust remain stockholders of the professional corporation for the duration of the trust; and

(2) All trustees of the trust are individuals licensed in the State to render the professional service named in the professional corporation's articles of incorporation.

(d)(1) If a settlor of stock in a professional corporation in a trust ceases to be a stockholder in the corporation, the settlor shall be a disqualified stockholder and the corporation shall acquire the stock held by the trust.

(2) An acquisition of stock under paragraph (1) of this subsection shall be made under §§ 5-113 through 5-115 of this subtitle.

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Cite this article: FindLaw.com - Maryland Code, Corporations and Associations § 5-118 - last updated January 01, 2025 | https://codes.findlaw.com/md/corporations-and-associations/md-code-corp-and-assns-sect-5-118/

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