STAND. COM. REP. NO. 824-04
Honolulu, Hawaii
, 2004
RE: S.B. No. 2908
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 2908, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO BUSINESS REGISTRATION,"
begs leave to report as follows:
The purpose of this bill is to update and increase the effectiveness of Hawaii's business registration law by, among other things:
(1) Clarifying ambiguities and correcting errors that exist due to drafting errors, changes in division policies and procedures, and changes in federal and common law;
(2) Promoting uniformity throughout the business registration chapters by adding or amending definitions and other language;
(3) Clarifying that Hawaii corporations have an alternative way for internal decisions to be made by way of shareholder agreements that will help the corporations avoid the expense and inflexibility associated with shareholder meetings;
(4) Providing for the appointment of a trustee or receiver for dissolved nonprofit corporations;
(5) Repealing the requirement that operating agreements for limited liability companies be in writing;
(6) Conforming the Uniform Limited Partnership Act to current state business registration practices; and
(7) Requiring limited and foreign limited partnerships to provide the names and addresses of each general partner in their annual statement filed with the Department of Commerce and Consumer Affairs (DCCA).
DCCA and concerned individuals submitted testimony in support of this measure. A concerned individual supported this measure with amendments. A concerned individual opposed a section of this bill.
Your Committee notes that concerns have been raised that deleting the requirement of conspicuous notice on stock certificates of unusual provisions regarding corporate governance would make it difficult, if not impossible, for the investing public to determine that these provisions exist. However, your Committee finds that these concerns are more properly addressed by your Committee on Consumer Protection and Commerce.
As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2908, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection and Commerce.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,
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____________________________ BRIAN SCHATZ, Chair |
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