360 LAWS OF MARYLAND [CH. 137

WHEREAS, Section 240A of Article 16 of the Annotated
Code of Maryland, as enacted by Chapter 1072 of the Acts of
1945, provides that no stockholder may bring suit in the
right of the corporation, unless he was a stockholder of the
corporation at the time of the transaction complained of, or
unless his stock thereafter devolved upon him by operation
of law; and

WHEREAS, the Courts of Maryland, in the exercise of their
general equity powers, prior to the passage of said Section
240A, have announced and recognized this same general
principle of law under the common law of the State, as more
particularly set forth in such cases as Eisler v. Eastern
States Corp., 182 Md. 335 (1943) and Matthews v. Headley
Chocolate Co., 130 Md. 523 (1917); and

WHEREAS, in view of said decisions of the Court of Appeals
of Maryland, said Section 240A is unnecessary, and may even
prove unjust and inequitable in some cases, inasmuch as the
proper balancing of the equities in cases of this type can be
achieved only in the light of the particular set of facts of
each case, and not through a rigid rule of law incorporated
into the statute; now, therefore,

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That Section 240A of Article 16 of the Annotated Code
of Maryland (1947 Supplement), title "Chancery", sub-title
"Pleadings, Practice and Process", be and it is hereby re-
pealed.

SEC. 2. And be it further enacted, That this Act shall take
effect on June 1, 1951.

Approved March 21, 1951.

CHAPTER 137

(Senate Bill 113)

AN ACT to repeal Sections 187-228, inclusive, of the
Code of Public Local Laws of Prince George's County
(Flack's Edition 1943), being part of Article 17 of

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EXPLANATION: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.