HRS §414-176
Stopping or settling a shareholder lawsuit
A shareholder lawsuit brought on behalf of a corporation cannot be dropped or settled unless a court approves it. If the court thinks the deal will significantly affect shareholders, it will order that those shareholders be told about it.
everyone
The statute, as written — Discontinuance or settlement
A derivative proceeding may not be discontinued or settled without the court's approval. If the court determines that a proposed discontinuance or settlement will substantially affect the interests of the corporation's shareholders or a class of shareholders, the court shall direct that notice be given to the shareholders affected.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.