(a) In discharging the duties of their respective positions, the board of directors, committees of the board, and individual directors of a sustainable business corporation, in considering the best interests of the sustainable business corporation:

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Terms Used In Hawaii Revised Statutes 420D-6

  • 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.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • General public benefit: means a material positive impact on society and the environment, taken as a whole and as measured by a third-party standard under section 420D-12, from the business and operations of a sustainable business corporation. See Hawaii Revised Statutes 420D-2
  • Sustainable business corporation: means a domestic corporation, incorporated under chapter 414, that has elected to also become subject to this chapter and whose status as a sustainable business corporation has not been terminated as provided in this chapter. See Hawaii Revised Statutes 420D-2
(1) Shall consider the effects of any action of the sustainable business corporation upon:

(A) The shareholders of the sustainable business corporation; and
(B) The accomplishment of general and specific public benefits set forth in the sustainable business corporation’s purposes; and
(2) May consider:

(A) The employees and workforce of the sustainable business corporation and its subsidiaries and suppliers;
(B) The interests of customers as beneficiaries of the general or specific public benefit purposes of the sustainable business corporation;
(C) Community and societal considerations, including those of any community in which offices or facilities of the sustainable business corporation or its subsidiaries or suppliers are located;
(D) The local and global environment;
(E) The short-term and long-term interests of the sustainable business corporation, including benefits that may accrue to the sustainable business corporation from its long-term plans and the possibility that these interests may be best served by the continued independence of the sustainable business corporation;
(F) The ability of the sustainable business corporation to accomplish its general public benefit purpose and any specific public benefit purpose;
(G) The resources, intent, and conduct of any person seeking to acquire control of the corporation; and
(H) Any other pertinent factors or the interests of any other group that they deem appropriate.
(b) A director shall not be personally liable for monetary damages for any action taken as a director if the director performed the duties of the director’s office in compliance with the general standards of conduct pursuant to § 414-221.

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