HRS §414-176
Stopping or settling a shareholder lawsuit
Read the official text at capitol.hawaii.gov ↗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.
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The statute, as written — Discontinuance or settlement
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
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.