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HRS §414-199

When a court can remove a company director

A court can remove a director if the company or enough shareholders ask, and the director acted fraudulently or dishonestly, or badly abused their power, and removal helps the company. The court can also ban the director from being re-elected for a time it chooses. If shareholders start the case, the company must be named as a defendant.

courts

The statute, as written — Removal of directors by judicial proceeding

(a) The circuit court may remove a director of the corporation from office in a proceeding commenced either by the corporation or by its shareholders holding at least ten per cent of the outstanding shares of any class if the court finds that: (1) The director engaged in fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the corporation; and (2) Removal is in the best interest of the corporation. (b) The court that removes a director may bar the director from reelection for a period prescribed by the court. (c) If shareholders commence a proceeding under subsection (a), they shall make the corporation a party defendant.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.