HRS §432C-4
Nonprofit leaders cannot profit from the conversion
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) 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.
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