HRS §431:4-205
Directors who approve illegal dividends face penalties
A director of a Hawaii stock insurance company who votes for or agrees to pay a dividend to stockholders or reduce capital stock when the law does not allow it is breaking the law. This is in addition to any other legal liability they may have.
The statute, as written — Illegal dividends; reductions
Any director of a domestic stock insurer who votes for or concurs in the declaration or payment of any dividend to stockholders or a reduction of capital stock not authorized by law shall, in addition to any other liability imposed by law, be guilty of violation of this code.
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