(a) This section applies only to a corporation registered as an open-end
company under the Investment Company Act of 1940.
(b) Subject to the provisions of § 2-311 of this subtitle, if authorized
by its board of directors, a corporation may redeem shares of its stock
from any stockholder if the corporation's charter expressly provides
for the redemption of shares of its stock from any stockholder.
(c) Subject to the provisions of § 2-311 of this subtitle, unless
prohibited by its charter, in the case of a corporation whose charter
does not expressly provide for the redemption of shares of its stock,
the corporation may redeem shares of its stock from any stockholder if
the following conditions are met:
(1) The aggregate net asset value of the shares to be redeemed from the
stockholder is, as of the date of the redemption, $500 or less; and
(2) Written notice of the redemption is given to the stockholder of record
that:
(i) Is mailed first-class to the shareholder's last known address of
record;
(ii) States that all of the shares will be redeemed; and
(iii) Establishes a date for the redemption which is at least 45 days from
the date of the notice.
(3) The price to be paid for shares redeemed under this subsection shall be
the aggregate net asset value of the shares at the close of business on
the date of the redemption.
(4) If certificates representing the shares to be redeemed under this
subsection have been issued and are not surrendered for cancellation on
the date of redemption:
(i) The corporation may withhold payment for the redeemed shares until the
certificates are surrendered for cancellation; and
(ii) Except for the right to receive payment of the redemption price, the
stockholder shall cease to have any rights as a stockholder of the
corporation on the date of redemption.
(5) If the aggregate net asset value of the shares to be redeemed under
this subsection should increase to an amount greater than $500 between
the date of the notice of redemption and the date of the redemption,
then the notice of redemption shall have no further force or
effect.
|
