STAND. COM. REP. NO.2072
RE: S.B. No. 2730
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2730 entitled:
"A BILL FOR AN ACT RELATING TO MERGERS,"
begs leave to report as follows:
The purpose of this measure is to expand and clarify the State's business merger laws.
The Commissioner of Securities testified in support of this measure.
Currently, state law restricts mergers among various types of business entities and is unclear as to the requirements for mergers between certain entities. This measure, which is based on Delaware law, allows registered business entities to merge freely with other registered entities. Additionally, this measure clarifies the procedures for approval of a merger by shareholders and the filing of articles of merger. Your Committee finds that providing for greater flexibility in the State's merger laws will facilitate business and commercial activity in Hawaii.
Your Committee has amended this measure by making technical changes to reflect preferred drafting style and to replace statutory references to repealed provisions with references to the appropriate new provisions proposed herein.
As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2730, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2730, S.D. 1, and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
RON MENOR, Chair