1. (a)

   1. (1) In this subtitle, “distribution” means:

      1. (i) A direct or indirect transfer of money or other property of the corporation in respect of any of its shares; or
      2. (ii) An incurrence or forgiveness of indebtedness by a corporation to or for the benefit of the corporation's stockholders in respect of any of its shares.
   2. (2) “Distribution” does not include a stock dividend or stock split authorized in accordance with § 2-309(c) of this subtitle.

2. (b) A distribution may be in the form of:

   1. (1) A declaration or payment of a dividend;
   2. (2) A purchase, redemption, whether or not at the option of the corporation or the stockholders, or other acquisition of shares; or
   3. (3) An issuance of evidence of indebtedness.

Added by Acts 1988, c. 280, § 1; Acts 1988, c. 281, § 1. Amended by Acts 2003, c. 301, § 1, eff. June 1, 2003; Acts 2004, c. 25, § 5, eff. April 13, 2004.