{"data":{"id":"us-md/md.-code-corporations-and-associations-5-508","jurisdiction":"us-md","citation":"Md. Code, Corporations and Associations § 5–508","heading":"","body":"(a) A cooperative may:\n(1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;\n(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;\n(3) Limit the number of shares of stock which a person may hold; and\n(4) Reserve to the board of directors:\n(i) The option to purchase for the cooperative the stock offered by any stockholder; and\n(ii) The right to redeem the stock of any stockholder.\n(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.\n(c) A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:\n(1) Set forth in the charter; and\n(2) Printed on any stock subscription document and the stock certificate.","path":["Article - Corporations and Associations"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca\u0026section=5-508","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:43Z","sha256":"933963297b58f294cfb4917fb203085a3cca8097592419a6e591e927053cfce6","source_id":"us-md","stale":false,"prev":"us-md/md.-code-corporations-and-associations-5-507","next":"us-md/md.-code-corporations-and-associations-5-509"},"notice":"GroundRules: Original legal text. Not legal advice."}