(a) If a member desires to withdraw from the association or dispose of any or all of the member’s holdings therein, the directors shall have the power to purchase those holdings by paying the member out of surplus funds the par value or book value, whichever is less, of any or all of the holdings offered. The directors shall then reissue or cancel the holdings.

Terms Used In Hawaii Revised Statutes 421C-22

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Association: means a consumer cooperative association. See Hawaii Revised Statutes 421C-1
  • Directors: means the board of directors of an association. See Hawaii Revised Statutes 421C-1
  • Member: means a member of either a stock or a nonstock association in accordance with section 421C-3. See Hawaii Revised Statutes 421C-1
  • Surplus funds: means funds of an association which may be utilized for capital improvements, emergencies, or other expenditures of the association upon the authorization of the directors as specified in § 421C-25 or as otherwise specified in this chapter. See Hawaii Revised Statutes 421C-1
(b) If the association fails, within ninety days of the original offer, to purchase all or any part of the holdings offered, the member may dispose of the unpurchased interest elsewhere, subject to the approval of the transferee by a majority vote of the directors. Any prospective transferee not approved by the directors may appeal to the members at their first regular or special meeting thereafter, and the action of the meeting shall be final. If such transferee is not approved, the directors shall exercise their power to purchase, if and when there are sufficient surplus funds.
(c) Members who withdraw from an association under this section may not rejoin that association for six months except with the majority approval of the directors.

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