(a) Directors or officers of a nonprofit entity are prohibited from directly benefiting from the conversion.

Terms Used In Hawaii Revised Statutes 432C-4

  • Conversion: means the transfer or sale of a significant amount of a nonprofit entity's assets to a for-profit entity or through any other means as determined by the commissioner. See Hawaii Revised Statutes 432C-1
  • For-profit entity: means a corporation organized under chapter 414, including a stock insurance company. See Hawaii Revised Statutes 432C-1
  • Nonprofit entity: means any charitable organization operating pursuant to Title Hawaii Revised Statutes 432C-1
(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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