(a) A corporation other than a public benefit corporation may purchase its memberships if, after the purchase is completed:

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Terms Used In Hawaii Revised Statutes 414D-232

  • Affiliate: means an entity that directly or indirectly controls, is controlled by, or is under common control with the public benefit corporation. See Hawaii Revised Statutes 414D-14
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means a nonprofit corporation unless otherwise specified. See Hawaii Revised Statutes 414D-14
  • Distribution: means the payment of a dividend or any part of the income or profit of a corporation to its members, directors, or officers. See Hawaii Revised Statutes 414D-14
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Member: means (without regard to what a person is called in the articles or bylaws) any person or persons having the rights and obligations of membership pursuant to a corporation's articles of incorporation or bylaws. See Hawaii Revised Statutes 414D-14
  • Public benefit corporation: means any corporation designated by statute as a public benefit corporation, or any corporation that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or that is organized for public or charitable purposes and upon dissolution must distribute its assets to a public benefit corporation, the United States, a state, or a person recognized as exempt under section 501(c)(3) of the Internal Revenue Code of 1986, as amended. See Hawaii Revised Statutes 414D-14
(1) The corporation would be able to pay its debts as they become due in the usual course of its activities; and
(2) The corporation’s total assets would be equal to at least the sum of its total liabilities.
(b) Corporations may make distributions upon dissolution in conformity with part XIII.
(c) The public benefit corporation, in conformity with its purposes, may make distributions to and confer benefits on a member or an affiliate that is another public benefit corporation if, after any distribution is completed:

(1) The public benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and
(2) The public benefit corporation’s total assets would be equal to at least the sum of its total liabilities.
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