Hawaii Agreement to Incorporate Close Corporation

• Category: Corporations - Incorporation
• State: Multi-State
• Control #: US-0092BG
• Format: Word; Rich Text

Description

A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. Many of these types of corporations are small firms that in the past would have been operated as a sole proprietorship or partner¬ship, but have been incorporated in order to obtain the advantages of limited liability or a tax benefit or both. The Hawaii Agreement to Incorporate Close Corporation is a legal document that outlines the formation and operation of a close corporation in the state of Hawaii. A close corporation is a type of corporation that is owned and operated by a few individuals, typically family members or close friends, who actively participate in the business. This agreement sets forth important provisions governing the rights, responsibilities, and powers of the shareholders, directors, and officers of the close corporation. It serves as the foundation for the company's governance structure and helps ensure smooth and efficient operations. Keywords: Hawaii, Agreement to Incorporate Close Corporation, legal document, formation, operation, close corporation, small number of individuals, family members, close friends, shareholders, directors, officers, governance structure, smooth operations. Different Types of Hawaii Agreement to Incorporate Close Corporation: 1. Voting vs. Non-voting Close Corporation: This agreement allows for the establishment of two types of close corporations — voting and non-voting. In a voting close corporation, each shareholder has the right to vote on corporate matters, whereas in a non-voting close corporation, shareholders do not possess voting rights. 2. Statutory Close Corporation: Hawaii law recognizes the concept of a "statutory close corporation," which is a specific type of close corporation with additional legal protections. The agreement for a statutory close corporation may include provisions regarding limitations on the transferability of shares, limits on the number of shareholders, and other unique characteristics defined by statute. 3. Professional Close Corporation: In certain professions, such as law or accounting, Hawaii permits the creation of a professional close corporation. Professionals can form a close corporation to limit personal liability while maintaining the benefits of a closely held corporation. 4. Buy-Sell Agreements: The Hawaii Agreement to Incorporate Close Corporation also allows for the inclusion of buy-sell agreements. These agreements define how shares can be bought or sold in specific situations, such as the death, disability, or retirement of a shareholder, ensuring the smooth transition of ownership without disrupting the business's continuity. Keywords: Voting vs. Non-voting Close Corporation, statutory close corporation, professional close corporation, buy-sell agreements, shares, limitations, transferability of shares, number of shareholders, personal liability, closely held corporation, death, disability, retirement, ownership, continuity.

The Hawaii Agreement to Incorporate Close Corporation is a legal document that outlines the formation and operation of a close corporation in the state of Hawaii. A close corporation is a type of corporation that is owned and operated by a few individuals, typically family members or close friends, who actively participate in the business. This agreement sets forth important provisions governing the rights, responsibilities, and powers of the shareholders, directors, and officers of the close corporation. It serves as the foundation for the company's governance structure and helps ensure smooth and efficient operations. Keywords: Hawaii, Agreement to Incorporate Close Corporation, legal document, formation, operation, close corporation, small number of individuals, family members, close friends, shareholders, directors, officers, governance structure, smooth operations. Different Types of Hawaii Agreement to Incorporate Close Corporation: 1. Voting vs. Non-voting Close Corporation: This agreement allows for the establishment of two types of close corporations — voting and non-voting. In a voting close corporation, each shareholder has the right to vote on corporate matters, whereas in a non-voting close corporation, shareholders do not possess voting rights. 2. Statutory Close Corporation: Hawaii law recognizes the concept of a "statutory close corporation," which is a specific type of close corporation with additional legal protections. The agreement for a statutory close corporation may include provisions regarding limitations on the transferability of shares, limits on the number of shareholders, and other unique characteristics defined by statute. 3. Professional Close Corporation: In certain professions, such as law or accounting, Hawaii permits the creation of a professional close corporation. Professionals can form a close corporation to limit personal liability while maintaining the benefits of a closely held corporation. 4. Buy-Sell Agreements: The Hawaii Agreement to Incorporate Close Corporation also allows for the inclusion of buy-sell agreements. These agreements define how shares can be bought or sold in specific situations, such as the death, disability, or retirement of a shareholder, ensuring the smooth transition of ownership without disrupting the business's continuity. Keywords: Voting vs. Non-voting Close Corporation, statutory close corporation, professional close corporation, buy-sell agreements, shares, limitations, transferability of shares, number of shareholders, personal liability, closely held corporation, death, disability, retirement, ownership, continuity.