STAND. COM. REP. NO. 779

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1081
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Consumer Protection and Commerce, to which
was referred H.B. No. 1081 entitled: 

     "A BILL FOR AN ACT RELATING TO CORPORATIONS,"

begs leave to report as follows:

     The purpose of this bill is to provide shareholders of a
corporation the opportunity to authorize another person to vote
shares by proxy, where the authorization may be either in the
form of a written, signed document, or an electronically
transmitted document specifying that the transmission was
authorized by the shareholder.

     Testimony in support of this bill was submitted by the
Business Registration Division of the Department of Commerce and
Consumer Affairs (DCCA).  DCCA testified that the bill is a
product of DCCA's attempt to modernize and update business laws
in consultation with the Hawaii State Bar Association, business
agents, business owners, and other DCCA "customers."  DCCA stated
that the bill is intended to make it easier for corporations to
do their business by giving shareholders the flexibility to
authorize another person to act as a proxy, and providing
shareholders with an expeditious alternative means of sending
their authorization to the proxy holder.

     Your Committee has made technical, nonsubstantive amendments
to this bill to correct typographic and drafting errors, and for
purposes of clarity, consistency, and style.


 
 
                                 STAND. COM. REP. NO. 779
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1081, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1081, H.D. 1, and be placed on the calendar for Third Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,



                                   ______________________________
                                   RON MENOR, Chair