§480-8  Interlocking directorates and
relationships.  (a)  From and after February 21, 1962, no person shall be
at the same time a director, officer, partner, or trustee in any two or more
firms, partnerships, trusts, associations, or corporations or any combination
thereof, engaged in whole or in part in commerce, if such firms, partnerships,
trusts, associations, or corporations or any combination thereof, are or shall
have been theretofore, by virtue of their business and location of operation,
competitors, so that the elimination of competition by agreement between them
would constitute a violation of this chapter.



(b)  From and after February 21, 1962, no
person shall be at the same time a director, officer, partner, or trustee in
any two or more noncompeting firms, trusts, partnerships, or corporations or
any combination thereof, any one of which has a total net worth aggregating
more than $100,000, or a total net worth of all of the business entities
aggregating more than $300,000, engaged in whole or in part in trade or
commerce in this State where the effect of a merger between such business
entities whether legally possible or not may be substantially to lessen
competition or to tend to create a monopoly in any line of commerce in any
section of the State.  The total net worth herein mentioned with reference to a
corporation shall consist of the capital, surplus, and undivided profits; the
total net worth with reference to a firm or partnership shall consist of the
capital account; and the total net worth with reference to a trust shall
consist of the principal of the trust.



This subsection shall not apply to an
interlocking directorship between a bank doing a banking business and any other
business firm or entity.



(c)  No person shall by the use of a
representative or representatives effectuate the result prohibited in the
preceding subsections where the act or acts of the representative or
representatives acting in their capacities as directors, officers, partners, or
trustees of such business entities indicate an attempt, directly or indirectly,
to manipulate the conduct of the business entities to the detriment of any of
such entities and to the benefit of any other entity in which such person has
an interest.



(d)  The validity or invalidity of any act of
any director, officer, or trustee done by such director, officer, or trustee
while occupying such position in violation of this section shall be determined
by the statutory and common law of the State relating to corporations, trusts,
or associations except that it shall not be affected by section 1-6.  The
nonapplicability of section 1-6 is limited to this section only.



The attorney general may bring an action at any
time to cause a director, officer, or trustee who may be occupying such position
in violation of this section, to vacate the office or offices to effectuate the
termination of the prohibited interlocking relationship.  The attorney general
or any person affected by any act or acts of the director, officer, or trustee
may move to cause the director, officer, or trustee who may be occupying such
position in violation of this section to vacate the office or offices to
effectuate the termination of the prohibited interlocking relationship, in any
action or proceeding in which the person affected, and any such director,
officer, or trustee, or the legal entities in which the director, officer, or
trustee holds office are parties to the action or proceeding, without the
necessity of bringing a separate action to try title to office.  The court upon
finding that a director, officer, or trustee is holding office in contravention
of this section shall order the person to terminate the interlocking
relationship, and in the case of a trustee, the court may, when it deems
appropriate, order the attorney general to institute proceedings for the
removal of the trustee from the trustee's office, and the findings of the court
of the violation of this section by the trustee shall be a sufficient cause of
action to maintain the proceeding.  Any remedy provided in this section shall
not limit and is in addition and cumulative to any other remedy available under
any other section of this chapter or any other law. [L 1961, c 190, §6; Supp,
§205A-6; HRS §480-8; gen ch 1985]