HRS §432C-4
Nonprofit leaders cannot profit from the conversion
Read the official text at capitol.hawaii.gov ↗This section stops directors and officers of a nonprofit from getting personal benefits when the nonprofit converts to a for-profit. It also says that an officer who worked for the nonprofit when the conversion was applied for, at the time of conversion, or within one year after, cannot be hired by the new for-profit company.
The statute, as written — Directors, officers of nonprofit entity; prohibition
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) Directors or officers of a nonprofit entity are prohibited from directly benefiting from the conversion. (b) No officer of the nonprofit entity who is employed by the nonprofit entity at the time the conversion application is submitted, at the time of conversion, or for a one-year period after conversion shall be employed by the for-profit entity.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.