The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1880-05-08
[CEArrSR 474.l
CORPORATIONS.
Chief Clerk Of the House of Delegates.
AN ACT

To repeal section two hundred and nineteen Of
article ,Neuty-six of the Code Of Public Gene
raj Laws, title Corporations" subtitle Go
operative Stores, &c, as the same was re-
enacted by the act Of eighteen hundred and
sixty-eight, chapter four hundred and seventy
one, aud to Ie-enaci the came with amend
ments.
SkcTIoS |. Be II enacted BY the General As
sembly Of Maryland, That section two hundred
and nineteen OF article twenty six Of the Code
of Public General Laws, as the same was re-
enacted by the act Of eighteen hundred and
sixty-eighi, chapter four hundred and seventy
one, entitled Corporations" relating TO pre-
ferred stock, be, and the same Is hereby, repealed
and the following substituted Ia lieu thereof:
Section 2l9. Every corporation incorporated
under the laws Of this State, which has the
power 10 issue bonds as evidences OF Indebted
ness, and 10 secure the same by mortgage Of the
property Of ouch corporation, or which has the
power 10 obtain such money upon mortgage,
may whenever in the Judgment Of said corpora
ton u is e1pedient to do so, in place Of Issuing
such bonds and securing tue same by mortgage
Of the property Of the said corporation, or in
stead OF obtaining money upon mortgage, issue
preferred stock for any amount for which the
said corporation msy be authorized TO issue its
bonds, or Tor any amount which the said corpo-
ration may be authorized 20 obtain upon mort.
gage Of IT'S property, and may dispose OF the
said stock by sale, on such terms as II may pre-
scribe, or by permitting the same to be sub
seribed for, as IN the judgment Of said oOrpo-
ration may be deemed expedient, aud every
corporation creating such preferred stock a.
Aforesaid may execute an agreement under seal,
TO be acknowledged AZ conyeyances OF land are
required 10 be acknowledged and recorded in
the Office Of the Clerk Of the Circuit Court for
the county where the principal Office Of such
corporation shall be situated, or In the office Of
the Clerk Of the Superior Court Of Baltimore
city In case such Office shall be situated IN said
city, guaranteeing to the purchasers Of. or sub
scribers to such preferred stock, a perpetual
dividend oil six per centum per annum, out Of
the profits Of the said corporation, pay able yearly
or hall-yearly as said corporation shall deter
mine, tefore any dividend is distributed 10 any
OF the stockholders offhe said corporation other
Than the holders VI said preferred stock so ere
ated, and the holders thereof shall have all the
incidents, rights, privileges and immuni,ies and
liabilities 10 which the capital stock OF said
corporation or the holders thereof may he en-
diled or subject; provided, however, that no
corporation shall exercise any power under this
section unless the creation Of such preferred
stock shall be authorized by general meeting
Of the stockholders Of such corporation, and the
said preferred stock shall be and constitute a
lien on the franchises and property Of such cor
poration, and have priority over any subse-
quently created mortgage or other incumbrAnce.
Sec. 2. And be It enacted, That this act shall
take eifec, from the date OF It's passage.
HERMAN STUMP,
President Of the Senate.
HIRAM MCCULLOUGH,
Speaker Of the House Of Delegates.
Approved April 10, 1880.
WIN. 7. HAMILTON.
Governor Of Maryland.
We hereby certify that the sforegoing is cor
rect copy Of an act Of the General Assembly
Of Maryland, passed at the January session,
lsse.
EvssSs HIssms,
Secretary Of the Senate.
MnsoH Y. KIDB,
ohisf CLERK Of The House Of Delegates.