HRS §414-196
Staggered terms for directors
This section lets a company's articles of incorporation set up staggered terms for its board of directors if the board has nine or more members. It explains how to divide directors into groups and when each group's term ends. It only applies to companies that choose this option.
businesses
The statute, as written — Staggered terms for directors
If there are nine or more directors, the articles of incorporation may provide for staggering their terms by dividing the total number of directors into two or three groups, with each group containing one-half or one-third of the total, as near as may be. In that event, the terms of directors in the first group expire at the first annual shareholders' meeting after their election, the terms of the second group expire at the second annual shareholders' meeting after their election, and the terms of the third group, if any, expire at the third annual shareholders' meeting after their election. At each annual shareholders' meeting held thereafter, directors shall be chosen for a term of two years or three years, as the case may be, to succeed those whose terms expire.
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