Maryland § 5-5A-08
Full text of Maryland Maryland Code § 5-5A-08, with citation guidance and answers to common questions.
§ 5-5A-08.
(a) A cooperative may limit in its articles of incorporation the number of shares of stock that a person may hold.
(b) If a member desires to withdraw from a consumer cooperative or dispose of any or all of the member’s interest in the cooperative, the directors of the cooperative have the option to purchase that interest by paying the par value or book value, whichever is less, of any or all of the interest offered.
(c) If the cooperative fails, within 60 days of the original offer, to purchase all or any part of the interest offered, the member may sell the unpurchased interest to a purchaser who is eligible for membership in the cooperative.
(d) A consumer cooperative may provide in its articles of incorporation for a class of nonvoting capital stock or a class of nonstock voting membership.
(e) A consumer cooperative organized with voting stock may amend its articles of incorporation to provide for conversion of its voting stock at par value, to nonstock voting memberships. When that conversion occurs, voting stock shall convert to nonvoting capital stock of par value or, at the holder’s election, to a nonstock voting membership.
(f) A nonstock voting membership shall be continuing unless terminated by:
(1) A written request from the member; or
(2) The member’s failure to comply with the articles of incorporation or bylaws of the cooperative after receiving notice as required in the bylaws.
Frequently Asked Questions About Maryland § 5-5A-08
What does Maryland Code § 5-5A-08 cover?
Section 5-5A-08 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 § 5-5A-08?
A common citation format is "Maryland Code § 5-5A-08" (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 § 5-5A-08 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.