STAND. COM. REP. NO. 192
Honolulu, Hawaii
, 2013
RE: H.B. No. 791
Honorable Joseph M. Souki
Speaker, House of Representatives
Twenty-Seventh State Legislature
Regular Session of 2013
State of Hawaii
Sir:
Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 791 entitled:
"A BILL FOR AN ACT RELATING TO NONPROFIT CORPORATIONS,"
begs leave to report as follows:
The Department of the Attorney General, the Hawai‘i Alliance of Nonprofit Organizations, and the Maui NonProfit Directors Association testified in support of this measure.
Your Committee finds that sections 414D-301 through 414D-304, Hawaii Revised Statutes, create a judicially enforceable right for members of a membership-based nonprofit corporation to inspect the books and records of the corporation. However, there is no comparable provision to ensure that a director of a nonprofit corporation shall have reasonable access to the books and records of the corporation.
Your Committee further finds that, in order to comply with the duty of care imposed upon directors under state law, a director of a nonprofit corporation must be informed and have access to basic financial and operational data of the corporation. This measure requires the corporation to give reasonable access to the director and provides for enforcement by the courts.
As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 791 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,
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____________________________ ANGUS L.K. McKELVEY, Chair |
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