Form with which a corporation advises that it has resolved that some shareholders shall be required to give the corporation the opportunity to purchase shares before selling them to another.
The Hawaii Corporate Right of First Refusal, also known as the Corporate Resolutions, is a legal concept that grants a corporation the first opportunity to purchase a specific asset or property before it is sold to a third party. This right is often included in the corporation's bylaws or operating agreement as a means to protect the company's interests and ensure control over its assets. The Corporate Right of First Refusal enables a corporation to maintain control over its assets by providing it with the option to purchase additional shares of stock or any other assets being sold by existing shareholders or third parties. This process ensures that the company has the first chance to acquire an asset, providing it with the opportunity to maintain ownership and prevent dilution of existing shares. In Hawaii, there are different types of Corporate Right of First Refusal — Corporate Resolutions that can be implemented depending on the specific circumstances and the corporation's needs. These may include: 1. Stock Right of First Refusal: This type of resolution grants the corporation the right to purchase additional shares of stock that are being offered for sale by existing shareholders. The corporation has the first opportunity to buy the shares at a specified price before they are sold to third parties. 2. Asset Right of First Refusal: This resolution provides the corporation with the right to acquire specific assets or properties before they are sold to outside parties. It ensures that the corporation has the first chance to purchase assets important to its operations or strategic plans. 3. Membership Interest Right of First Refusal: In the case of limited liability companies (LCS), the Corporate Right of First Refusal can also extend to membership interests. This means that if a member of the LLC wishes to sell their membership interest, the corporation has the option to purchase it before it is sold to an outside party. By incorporating the Corporate Right of First Refusal in their corporate documents, Hawaii corporations can safeguard their ownership and control over assets, prevent unwanted dilution of shares, and ensure that strategic assets remain within the company's grasp. It provides a mechanism for protecting the corporation's interests and maintaining stability and control over its operations.
