What are the laws governing corporate governance?
Corporate governance in Hawaii is regulated by both state and federal laws. These laws ensure that corporations are run in a way that is beneficial to both the shareholders and the public. At the state level, the Hawaii Business Corporation Act governs the formation, operation, and dissolution of corporations. It sets out the duties and responsibilities of the directors and officers of a corporation, including providing guidance on issues such as conflict of interest, financial disclosure, and stockholder rights. The act also outlines the requirements for maintaining accurate corporate records and filing annual reports. Additionally, the act establishes the procedures for conducting shareholder meetings. At the federal level, the Sarbanes-Oxley Act of 2002 is a major piece of corporate governance legislation. It requires, among other things, that corporations have an audit committee and internal controls, provide financial disclosure related to executive compensation, and develop and maintain accurate records of all financial transactions. Overall, corporate governance laws in Hawaii are designed to protect shareholders, the public, and other stakeholders in the corporation. They ensure that corporations are managed in a transparent and ethical manner and that their financials are accurate and reported accurately. This helps to maintain public confidence in corporations and the economy as a whole.
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