1538

LAWS OF MARYLAND

[Ch. 311

THE BOARD OF DIRECTORS AND RECORDED IN THE RESOLUTION
AUTHORIZING THE ISSUANCE IS CONCLUSIVE.

(C) SECURITIES TO WHICH PREEMPTIVE RIGHTS DO NOT
ACCRUE.

UNLESS THE CHARTER PROVIDES OTHERWISE, HOLDERS OF
THE FOLLOWING SECURITIES DO NOT HAVE ANY PREEMPTIVE
RIGHTS:

(1)    BONDS, NOTES, DEBENTURES, OR OTHER
OBLIGATIONS CONVERTIBLE INTO STOCK; AND

(2)    STOCK NOT PRESENTLY ENTITLED TO BE VOTED
IN THE ELECTION OF DIRECTORS.

REVISOR'S NOTE: This section presently appears as
Art. 23, §30(b) and (c). Present §30(a),
which provides that preemptive rights may be
determined in the charter, now appears as
§2-105(10).

Although present §30(b) (7) is silent as to the
situation where two or lore classes of stock
are entitled to vote separately, §2—506 now
covers this point. For a full explanation,
see revisor's note to that section.

The provisions of the second paragraph of
§30(b) (8), making the value of consideration
fixed by the directors conclusive, are deleted
as unnecessary in light of § 2—203 (b). The
provisions relating to the value of the stock
are retained in subsection (b) of this
section.

The only other changes are in style.

2-206. PAYMENT FOR STOCK AND CONVERTIBLE SECURITIES.

(A) WHAT CONSTITUTES PAYMENT.

THE CONSIDERATION FOR THE ISSUANCE OF STOCK,
CONVERTIBLE SECURITIES, WARRANTS, OR OPTIONS MAY BE PAID
IN WHOLE OR IN PART IN:

(1) MONEY;

(2) TANGIBLE OR INTANGIBLE PROPERTY; OR

(3) LABOR OR SERVICES ACTUALLY PERFORMED
FOR THE CORPORATION.

(B) WHAT DOES NOT CONSTITUTE PAYMENT.