The Business Registration Division has the power to administratively dissolve a Hawaii corporation by signing a decree of dissolution that recites the grounds for dissolution and its effective date. Frequently the reason for the dissolution is the failure by a corporation’s officers to file its annual reports for two years in a row.
Hawaii statutory law allows a corporation that has been administratively dissolved to apply to the Business Registration Division for reinstatement, but only if it is done within two year after the effective date of dissolution. The Division’s form would be utilized and delinquent annual reports would be attached to the “Application for Reinstatement”.
The problem is if the “Application for Reinstatement” is not timely filed, the Hawaii corporation will continue its corporate existence, but it may not carry on any business except to wind up and liquidate it business and affairs. The Hawaii statute details how known and unknown claims against the dissolved corporation must be handled.
Contact us about your questions regarding any of your Hawaii corporation’s issues. We can guide you safely through the often confusing laws and requirements.
More Articles on Hawaii Corporate and Business Law
- Duties Owed By a Hawaii Agent to its Principal
- Hawaii LLC Formation: Manager-Managed Versus Member-Managed
- How To Acquire An Existing Hawaii Business
- Incorporating In Hawaii
- Issues You Must Know About In Your Purchase or Sale of Medical & Dental Practices in Hawaii
- Owner’s Liability for the Debts and Obligations of a Hawaii Limited Liability Company
- Setting Up Your Hawaii Business Entity for the Small Business Administration’s 8(a) Business Development Program
- Transacting Business in Hawaii and Licensing
- What Happens When a Hawaii Corporation Has Been Administratively Dissolved?
- Why Using the Hawaii Department of Commerce and Consumer Affairs Business Registration Division’s Limited Liability Company Articles of Organization (Form LLC-1) May be a Mistake
- Why You Would Need an Operating Agreement for Your Hawaii LLC