← Back to search
HRS §414-262Judicial action
Read the official text at capitol.hawaii.gov ↗This section limits when courts can punish a corporation for a deal involving a director's personal interest. It says such deals can't be blocked or penalized if they followed proper approval rules or were fair to the company. It also protects ordinary deals from being attacked just because a director has some connection.
everyone
The statute, as written — Judicial action
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) A transaction effected or proposed to be effected by a corporation (or by a subsidiary of the corporation or any other entity in which the corporation has a controlling interest) that is not a director's conflicting interest transaction may not be enjoined, set aside, or give rise to an award of damages or other sanctions, in a proceeding by a shareholder or by or in the right of the corporation, because a director of the corporation, or any person with whom or which the director has a personal, economic, or other association, has an interest in the transaction. (b) A director's conflicting interest transaction may not be enjoined, set aside, or give rise to an award of damages or other sanctions, in a proceeding by a shareholder or by or in the right of the corporation, because the director, or any person with whom or which the director has a personal, economic, or other association, has an interest in the transaction, if: (1) Directors' action respecting the transaction was at any time taken in compliance with section 414-263; (2) Shareholders' action respecting the transaction was at any time taken in compliance with section 414-264; or (3) The transaction, judged according to the circumstances at the time of commitment, is established to have been fair to the corporation.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026 Sections this one refers to
§414-263 Directors' action on a conflict-of-interest transaction
§414-264 When shareholder approval counts for a director's conflict deal
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.