(a) A corporation may acquire its own shares and shares so acquired constitute authorized but unissued shares.
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Terms Used In Hawaii Revised Statutes 414-102

  • Articles of incorporation: include amended and restated articles of incorporation and articles of merger. See Hawaii Revised Statutes 414-3
  • Authorized shares: means the shares of all classes a domestic corporation is authorized to issue. See Hawaii Revised Statutes 414-3
  • 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.
  • Department director: means the director of commerce and consumer affairs, unless the context otherwise requires. See Hawaii Revised Statutes 414-3
  • Shares: means the units into which the proprietary interests in a corporation are divided. See Hawaii Revised Statutes 414-3
(b) If the articles of incorporation prohibit the reissuance of acquired shares, the number of authorized shares is reduced by the number of shares acquired, effective upon delivery to the department director for filing, a statement of cancellation showing the reduction in the authorized shares.
(c) The statement of cancellation must set forth:

(1) The name of the corporation;
(2) The number of acquired shares canceled, itemized by class and series; and
(3) The total number of authorized shares, itemized by class and series, remaining after reduction of the shares.
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