Hawaii Revised Statutes 421C-23 – Recall of member’s holdings

(a) The bylaws may give the directors the authority to use surplus funds to recall, at par value or book value, whichever is less, the holdings of any member in excess of the amount requisite for membership.

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Terms Used In Hawaii Revised Statutes 421C-23

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) The directors may purchase the amount requisite for membership in cases of inactivity, expulsion, death of the member, or otherwise, as provided in the bylaws of the association. When so recalled, such stock or membership certificate shall be either reissued or canceled.

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Hawaii Revised Statutes 421C-23 – Recall of member’s holdings

Terms Used In Hawaii Revised Statutes 421C-23

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