{"data":{"id":"us-md/md.-code-corporations-and-associations-2-304","jurisdiction":"us-md","citation":"Md. Code, Corporations and Associations § 2–304","heading":"","body":"(a) By resolution of its board of directors, a corporation may apply any part of its capital surplus for:\n(1) The reduction or elimination of a corporate deficit arising from a loss, however incurred, or from diminution in the value of its assets, but only after earned surplus is exhausted; or\n(2) Any other proper corporate purpose.\n(b) An application of capital surplus under subsection (a) of this section shall be disclosed to the stockholders of the corporation in its next annual report.","path":["Article - Corporations and Associations"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca\u0026section=2-304","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:43Z","sha256":"cce94ea2397d9f8c2fd40e7ae2e02b2f4f7b797c1bc029564c8db5572542830a","source_id":"us-md","stale":false,"prev":"us-md/md.-code-corporations-and-associations-2-303","next":"us-md/md.-code-corporations-and-associations-2-305"},"notice":"GroundRules: Original legal text. Not legal advice."}