Section 4-303 - Effect of election to have no board of directorsIf there is an election to have no board of directors:
(1) The stockholders may exercise all powers of directors, and the business and affairs of the corporation shall be managed under their direction;(2) The stockholders of the corporation are responsible for taking any action required by law to be taken by the board of directors;(3) Action by stockholders shall be taken by the voting of shares of stock as provided in this article;(4) The stockholders may take any action for which this article otherwise would require both a resolution of directors and a vote of stockholders;(5) By the affirmative vote of a majority of all the votes entitled to be cast, the stockholders may take any action for which this article otherwise would require a vote of a majority of the entire board of directors;(6) A statement that the corporation is a close corporation which has no board of directors satisfies any requirement that an instrument filed with the Department contain a statement that a specified action was taken by the board of directors;(7) The special liabilities imposed on directors by § 2-312(a) of this article and the provisions of §§ 2-312(b) and 2-410 of this article apply to the stockholders of the corporation and, for this purpose, "present" in § 2-410 of this article means present in person or by proxy; and(8) A stockholder is not liable for any action taken as a result of a vote of the stockholders, unless he was entitled to vote on the action.