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HRS §414D-152

Directors' personal liability for illegal payouts

If a director votes for or agrees to a payout that breaks the law, and the director did not follow the required rules of conduct, that director must personally repay the corporation the part of the payout that was illegal. The director can then get contributions from other directors who also broke the rules, and from people who received the illegal payout.

The statute, as written — Liability for unlawful distributions

(a) Unless a director complies with the applicable standards of conduct described in section 414D-149, a director who votes for or assents to a distribution made in violation of this chapter shall be personally liable to the corporation for the amount of the distribution that exceeds what could have been distributed without violating this chapter. (b) A director held liable for an unlawful distribution under subsection (a) is entitled to contribution from: (1) Every other director who voted for or assented to the distribution without complying with the applicable standards of conduct described in section 414D-149; and (2) Each person who received an unlawful distribution for the amount of the distribution whether or not the person receiving the distribution knew it was made in violation of this chapter.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§414D-149 Rules for how directors must do their jobs

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