Maryland § 4-503
Full text of Maryland Maryland Code § 4-503, with citation guidance and answers to common questions.
§ 4-503.
(a) (1) In this section, “transfer” means the transfer of any interest in the stock of a close corporation, except:
(i) A transfer by operation of law to a personal representative, trustee in bankruptcy, receiver, guardian, or similar legal representative;
(ii) The acquisition of a lien or power of sale by an attachment, levy, or similar procedure; or
(iii) The creation or assignment of a security interest.
(2) A foreclosure sale or other transfer by a person who acquired his interest or power in a transaction described in paragraph (1) of this subsection is a transfer subject to all the provisions of this section. For purposes of the transfer, the person effecting the foreclosure sale or other transfer shall be treated as and have the rights of a holder of the stock under this section and § 4-602(b) of this title.
(b) A transfer of the stock of a close corporation is invalid unless:
(1) Every stockholder of the corporation consents to the transfer in writing within the 90 days before the date of the transfer; or
(2) The transfer is made under a provision of a unanimous stockholders’ agreement permitting the transfer to the corporation or to or in trust for the principal benefit of:
(i) One or more of the stockholders or security holders of the corporation or their wives, children, or grandchildren; or
(ii) One or more persons named in the agreement.
Frequently Asked Questions About Maryland § 4-503
What does Maryland Code § 4-503 cover?
Section 4-503 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 4-503?
A common citation format is "Maryland Code § 4-503" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 4-503 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.