Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs, to which were referred S.B. No. 2730, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this bill, which applies to business corporations, partnerships, limited liability partnerships, nonprofit corporations, and professional corporations, is to enhance the State's business climate by expanding and clarifying Hawaii's business entity merger laws.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs (DCCA).

Your Committees find that state laws presently place restrictions on mergers of certain business entities and are unclear as to the types of mergers that are allowed, thus hampering Hawaii's business and commercial activities.

By allowing business entities to merge freely with other registered entities, this bill provides needed flexibility that will improve the business climate for current and new businesses. This bill also clarifies the procedures for approval of a merger by shareholders, and the filing of articles of merger.

As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2730, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.