STAND. COM. REP. NO. 1667

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1143
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 1143 entitled: 

     "A BILL FOR AN ACT RELATING TO CORPORATIONS,"

begs leave to report as follows:

     The purpose of this bill is to allow the shareholder of a
corporation to vote shares by proxy through the use of either a
written, signed authorization, or an electronically transmitted
authorization stating that the transmission was authorized by the
shareholder.

     The Department of Commerce and Consumer Affairs (DCCA) and
the Business Law Section of the Hawaii State Bar Association
(BLS) testified in support of this bill.  DCCA stated that the
measure would make it easier for corporations to do their
business by making the proxy authorization process more
convenient, expeditious, and flexible for shareholders.  BLS
testified that the bill is part of a package developed by DCCA in
consultation with BLS, and designed to make Hawaii a more
business friendly environment without compromising public policy
interests.

     Your Committee has amended this measure to ensure further
discussion, by replacing its contents with that of H.B. No. 1081,
H.D. 1, a similar measure that differs from this bill in
technical, nonsubstantive ways, and has made additional technical
amendments.

 
 
 
                                 STAND. COM. REP. NO. 1667
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1143, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1143, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair