(a) (1) In this subtitle, 'distribution' means: (i) A direct or indirect transfer of money or other property of the corporation in respect of any of its shares; or (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) 'Distribution' does not include a stock dividend or stock split authorized in accordance with § 2-309(c) of this subtitle. (b) A distribution may be in the form of: (1) A declaration or payment of a dividend; (2) A purchase, redemption, whether or not at the option of the corporation or the stockholders, or other acquisition of shares; or (3) An issuance of evidence of indebtedness.
Maryland Legal Code