2532                                             LAWS OF MARYLAND                       [Ch. 506

CHAPTER 506
(House Bill 1512)

AN ACT concerning

Corporations — Distribution of Assets

FOR the purpose of providing for the powers of directors
and the distribution of the assets of a corporation
on forfeiture of its charter; establishing certain
procedures and presumptions for the proof of
stockholders' interests and the distribution of
assets; and generally relating to corporations the
charters of which have been forfeited.

BY adding to

Article — Corporations and Associations
Section 3-516, 3-517, 3-518 and 3-519
Annotated Code of Maryland

(As enacted by Chapter______(S.B. 330) of the Acts

of the 1975 General Assembly)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Sections 3-516, 3-517, 3-518 and 3-519
be and they are hereby added to Article — Corporations
and Associations, of the Annotated Code of Maryland (As

enacted by Chapter,____(S.B. 330) of the Acts of the 1975

General Assembly) to read as follows:

Article — Corporations and Associations

3-516.             POWERS OF DIRECTORS ON FORFEITURE.

(A)    DIRECTORS BECOME TRUSTEES.

WHEN THE CHARTER OF A MARYLAND CORPORATION HAS
BEEN FORFEITED, UNTIL A COURT APPOINTS A RECEIVER, THE
DIRECTORS OF THE CORPORATION BECOME THE TRUSTEES OF ITS
ASSETS FOR PURPOSES OF LIQUIDATION.

(B)    GENERAL POWERS.

THE DIRECTOR-TRUSTEES ARE VESTED IN THEIR
CAPACITY AS TRUSTEES WITH FULL TITLE TO ALL THE
[[ASSESTS]] ASSETS OF THE CORPORATION. THEY SHALL:

(1)        COLLECT AND DISTRIBUTE THE ASSETS,

APPLYING THEM TO THE PAYMENT, SATISFACTION, AND DISCHARGE
OF EXISTING DEBTS AND OBLIGATIONS OF THE CORPORATION,