Maryland legislature approves changes to Maryland general corporation law and Maryland Reit Law – 2017

• Jurisdiction: South Africa
• Pages: 90-93
• Author: James J. Hanks Jr.
• Citation: (2017) 3(1) JCCL&P 90
• Date: 16 August 2019
• Published date: 16 August 2019

90

MARYLAND LEGISLATURE

APPROVES CHANGES TO

MARYLAND GENERAL

CORPORATION LAW AND

MARYLAND REIT LAW – 2017*

JAMES J. HANKS JR.

Partner, Venable LLP, Baltimore, MD

PATSY MCGOWAN

Partner, Venable LLP, Baltimore, MD

MICHAEL LEBER

Partner, Venable LLP, Baltimore, MD

I INTRODUCTION

The General Assembly of Maryland has enacted House Bill 744 (the

General Corporate Legislation), which makes several changes to the

Maryland General Corporation Law (the MGCL) and the Maryland

REIT Law (the MRL) (a real estate investment trust (REIT) is an entity

that owns or finances income-producing real property), as well as a

related change to the Courts and Judicial Proceedings Article of the

Annotated Code of Maryland. The General Assembly has also enacted

Senate Bill 398 and identical House Bill 759, relating to the formation

of holding companies (the Holding Company Legislation). The

General Corporate Legislation and the Holding Company Legislation

have been signed by Governor Hogan and will be effective 1 October

2017. Here are the key provisions of the Bills:

II GENERAL CORPORATE LEGISLATION

Exclusive Forum Bylaws. Although we believe that an exclusive forum

charter or bylaw provision is permitted by existing law, the General

Corporate Legislation amends the MGCL to expressly provide that

* This practice note was previously issued by the authors as a memo to the firm’s

clients on 25 May 2017. The authors specifically caution against treating the

memo as legal advice and invite any person to contact the firm if detailed legal

advice is sought in relation to the issues raised herein.

(2017) 3(1) JCCL&P 90

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