REPORT TITLE:
Control share acquisitions


DESCRIPTION:
Proposes amendments to the Hawaii Business Corporation Act to
make business acquisitions easier in situations where the
acquisition conforms with state merger laws or is approved by a
board of directors.  (HB2482 HD1)

 
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                                                        2482
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CONTROL SHARE ACQUISITIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      Section 1.  Section 415-171, Hawaii Revised Statutes, is
 
 2 amended by amending the definition of "control share acquisition"
 
 3 to read as follows:
 
 4      ""Control share acquisition" means an acquisition of shares
 
 5 of an issuing public corporation resulting in beneficial
 
 6 ownership by an acquiring person of a new range of voting power
 
 7 specified in this part, but does not include an acquisition:
 
 8      (1)  Before, or pursuant to an agreement entered into before
 
 9           the effective date of this part;
 
10      (2)  By a donee pursuant to an inter vivos gift not made to
 
11           avoid this part or by a distributee as defined in
 
12           chapter 560;
 
13      (3)  Pursuant to a security agreement not created to avoid
 
14           this part;
 
15      (4)  [Under chapter 417E, if the issuing public corporation
 
16           is a party to the transaction; or] Pursuant to a merger
 
17           or share exchange executed in accordance with
 
18           applicable law, if the issuing public corporation is a
 
19           party to the plan of merger or share exchange;
 

 
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Page 2                                                     2482
                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1      (5)  From the issuing public corporation[.];
 
 2      (6)  That is approved by resolution of the board of
 
 3           directors of the issuing public corporation before the
 
 4           acquisition occurs; or
 
 5      (7)  That the board of directors of the issuing public
 
 6           corporation determines, by resolution before the
 
 7           acquisition occurs, is not a control share
 
 8           acquisition."
 
 9      SECTION 2.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 3.  This Act shall take effect on July 1, 2000.
 

 
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