HRS §428-502
What happens when a member transfers their share
Read the official text at capitol.hawaii.gov ↗If a member of a limited liability company transfers their share of profits, the person receiving it only gets the money, not the right to act as a member. The member stops being a member if they transfer all their share, unless it's for a loan or a court order.
The statute, as written — Transfer of distributional interest
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 transfer of a distributional interest does not entitle the transferee to become or to exercise any rights of a member. A transfer entitles the transferee to receive, to the extent transferred, only the distributions to which the transferor would be entitled. A member ceases to be a member upon transfer of all of the member's distributional interest, other than a transfer for security purposes, or a court order charging the member's distributional interest, which has not been foreclosed.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.