692                              Laws of Maryland                       Ch. 295

441.

(c) Within [90] 120 days following the date of death of a share-
holder, or his disqualification as hereinbefore provided to own shares
in the corporation, all of the shares of such shareholder shall be
transferred to, and acquired by, the corporation or persons qualified
to own the shares. If no other provision to accomplish this transfer
and acquisition is in effect and carried out within this period, the
corporation thereafter shall purchase and redeem all of [the dece-
dent shareholder's] his shares of stock at book value, determined
as of the end of the month immediately preceding death or dis-
qualification. The book value shall be determined from the books
and records of the corporation in accordance with the regular
methods of accounting used by the corporation for the purposes of
determining net taxable income for federal income tax purposes;
and no subsequent adjustment of this income, whether by the cor-
poration itself, by federal income tax audit made and agreed to,
or by a court decision which has become final, shall alter the
redemption price. Nothing contained in this section shall prevent
the parties involved from making any other arrangement or pro-
vision in the corporate articles, bylaws, or by contract to transfer
the shares of a deceased or disqualified shareholder to the corpora-
tion or to persons qualified to own the shares, whether made before
or after the death or disqualification of the shareholder, provided
that with the [90] 120-day period herein specified all the stock
involved shall have been so transferred.

442.

A corporation organized and operating under this subtitle shall
furnish a report to the State Department of Assessments and Taxa-
tion by March 31 of each year showing the names and post-office
addresses of all its shareholders [directors and officers,] and shall
certify that all these persons are duly licensed, certified, registered
or otherwise legally authorized to render the appropriate profes-
sional or other personal service in this State. This report shall be
made on forms prescribed and furnished by the Department, and
shall not contain fiscal or other information other than that expressly
required by this subsection (section). It shall be signed by the presi-
dent or vice president and the secretary or an assistant secretary
of the corporation, and acknowledged before a notary public by
the persons signing the report. The report shall be filed with the
State Department of Assessments and Taxation, and shall be in
lieu of any regular annual report of corporations otherwise required
by this Article. The filing of such reports shall be governed by
Section 252 of Article 81, as amended from time to time.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1970, and shall apply to any professional corporation
whether organized before or after July 1, 1970.

Approved April 22, 1970

CHAPTER 295
(Senate Bill 585)

AN ACT to add new Section 102A to Article 78 of the Annotated
Code of Maryland (1969 Replacement Volume), title "Public