HRS §414D-16
Rules for private foundation corporations
This section tells private foundation corporations what they must do to avoid certain federal taxes. It requires them to make required distributions and bans self-dealing, excess business holdings, risky investments, and taxable spending. A court can change these rules if it decides otherwise.
The statute, as written — Private foundations
Except as otherwise determined by a court of competent jurisdiction, a corporation that is a private foundation as defined in section 509(a) of the Code: (1) Shall distribute such amounts for each taxable year at such time and in such manner as not to subject the corporation to tax under section 4942 of the Code; (2) Shall not engage in any act of self-dealing as defined in section 4941(d) of the Code; (3) Shall not retain any excess business holdings as defined in section 4943(c) of the Code; (4) Shall not make any investments in such manner as to subject the corporation to tax under section 4944 of the Code; (5) Shall not make any taxable expenditures as defined in section 4945(d) of the Code.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.