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Session Laws, 1993
Volume 772, Page 2594   View pdf image
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Ch. 507                                         1993 LAWS OF MARYLAND

(VII) SIBLING'S SPOUSE.

(3) (5) "NONPROFIT HEALTH SERVICE PLAN" MEANS A CORPORATION
INCORPORATED UNDER THE LAWS OF THIS STATE AND OPERATING UNDER A
CERTIFICATE OF AUTHORITY ISSUED BY THE COMMISSIONER UNDER THIS
SUBTITLE.                                         

(B) (I) THE BUSINESS AND AFFAIRS OF A NONPROFIT HEALTH SERVICE
PLAN SHALL BE MANAGED UNDER THE DIRECTION OF A BOARD OF DIRECTORS.

(2)    THE BOARD SHALL CARRY OUT ITS FIDUCIARY DUTIES, WHETHER
AS INDIVIDUAL DIRECTORS OR AS A WHOLE:                                                                         

(I)       IN GOOD FAITH;

(II)     IN A MANNER THAT IS REASONABLY BELIEVED TO BE IN THE
BEST INTERESTS OF THE CORPORATION; AND                                                                       

(III) WITH THE CARE THAT AN ORDINARILY PRUDENT PERSON IN A
LIKE POSITION WOULD USE UNDER SIMILAR CIRCUMSTANCES.

(3)      AN OFFICER OR EMPLOYEE OF A NONPROFIT HEALTH SERVICE
PLAN OR ANY OF ITS AFFILIATES OR SUBSIDIARIES MAY NOT BE APPOINTED OR
ELECTED TO THE BOARD.             

(4) (I) EXCEPT AS PROVIDED UNDER SUBPARAGRAPHS (II) AND (III) OF
THIS PARAGRAPH, A NONPROFIT HEALTH SERVICE PLAN MAY NOT CONTRACT OR
COMMENCE BUSINESS WITH AN ENTITY:

1. IN WHICH A BOARD MEMBER, A BOARD MEMBER'S
IMMEDIATE FAMILY MEMBER, OR A BOARD MEMBER IN COMBINATION WITH THE BOARD
MEMBER'S IMMEDIATE FAMILY MEMBER OWNS A BENEFICIAL INTEREST; OR

2. FROM WHICH A BOARD MEMBER RECEIVES COMPENSATION.

(II) 1. CONTRACTS OR BUSINESS RELATIONSHIPS THAT ARE IN
EXISTENCE ON OR BEFORE APRIL I, 1993 THAT WOULD CONSTITUTE A BENEFICIAL
INTEREST OF, OR A COMPENSATION ARRANGEMENT WITH, A BOARD MEMBER UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH MAY REMAIN IN EXISTENCE UNTIL THE END OF
THAT BOARD MEMBER'S EXISTING TERM.

2. IF A BOARD MEMBER IS REAPPOINTED TO A SUBSEQUENT
TERM, A CONTRACT OR BUSINESS RELATIONSHIP EXEMPTED UNDER SUBPARAGRAPH

(II)1 OF THIS PARAGRAPH MAY NOT BE CONTINUED.

3. A CONTRACT OR BUSINESS RELATIONSHIP EXEMPTED
UNDER SUBPARAGRAPH (II)1 OF THIS PARAGRAPH MAY NOT BE AMENDED OR ALTERED
WHILE THE BOARD MEMBER DESCRIBED UNDER THAT PARAGRAPH REMAINS ON THE
BOARD.                                                                                                                                               

(III) NOTHING IN THIS SECTION MAY BE CONSTRUED TO PROHIBIT A
HOSPITAL OFFICER, DIRECTOR, OR ADMINISTRATOR, OR A HEALTH CARE PRACTITIONER
LICENSED UNDER THE HEALTH OCCUPATIONS ARTICLE FROM SERVING ON THE BOARD.

- 2594 -                                                                       

 

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Session Laws, 1993
Volume 772, Page 2594   View pdf image
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