MARVIN MANDEL, Governor

1691

THIS SECTION IS BROUGHT TO THE ATTENTION OF THE
DEPARTMENT, THE DEPARTMENT IMMEDIATELY SHALL CERTIFY THAT
FACT TO THE ATTORNEY GENERAL FOR APPROPRIATE ACTION TO
DISSOLVE THE CORPORATION.

REVISOR'S NOTE: This section presently appears as

       Art. 23, §438.

In subsection (a) of this section, a
cross—reference to §1—203 of the Courts
Article is added to make clear that this
section is not intended to abrogate the right
of an attorney to enter into a long—term
pay—out agreement when he becomes a judge. In
addition, it should be noted that the
Commission believes that this section is not
intended to prohibit long—term pay—out
agreements to any other member of a
professional corporation when severing his
financial interest in the corporation.

In the introductory provisions of subsection
(a), the words "to the public" are deleted as
unnecessary in light of the definition of
"professional service" in §5—101 of this
subtitle. Also, in item (2) of this section,
the phrase "assumes elected office" is
substituted for "is elected to a public
office." This eliminates the apparently
unintended result of requiring severance
immediately on election, even if the person
will take office only souths after the
election. This change conforms to the present-
language "accepts employment" where the same
result is intended.

The only other changes are in style.

As to the forfeiture of corporate charters in
general, see Title 3, Subtitle 4 of this
article,

5-116. TRANSFER AND ACQUISITION OF SHARES OF DECEASED OR
DISQUALIFIED STOCKHOLDER.

(A) ACQUISITION OF STOCK BY THE CORPORATION.

WITHIN 120 DAYS AFTER THE DEATH OF A STOCKHOLDER
OR HIS DISQUALIFICATION TO PERFORM THE PROFESSIONAL
SERVICE, HIS STOCK SHALL BE TRANSFERRED TO AND ACQUIRED
BY THE CORPORATION OR AN INDIVIDUAL QUALIFIED TO OWN THE
STOCK.

(B) PURCHASE AND REDEMPTION AT BOOK VALUE.