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Can a nonprofit board vote by email in Hawaii?

Mahesh Murthy, FounderVoting and decisions

Only if every director signs a written consent. What HRS 414D-144 requires for a Hawaii nonprofit board to act without a meeting.

Only if every director signs a written consent. Hawaii lets a nonprofit board act without a meeting when all of its directors sign, and the statute doesn't say whether an emailed reply counts as a signed consent. It does say a written consent can be signed electronically, if the corporation takes reasonable steps to authenticate the signature.

This is general information, not legal advice. Check your bylaws, and ask counsel whether a particular vote counts for your board.

What Hawaii law says

Hawaii Revised Statutes section 414D-144 says, "Unless the articles or bylaws provide otherwise, action required or permitted by this chapter to be taken at a board of directors' meeting may be taken without a meeting if the action is taken by all members of the board." The action "must be evidenced by one or more written consents describing the action taken, signed by each director, and included in the minutes filed with the corporate records reflecting the action taken."

The action is effective when the last director signs the consent, unless the consent specifies a different effective date. A signed consent has the effect of a meeting vote.

Subsection (d) says a written consent "includes a consent executed by an electronic or digital signature; provided that the corporation employs reasonable measures to authenticate the electronic or digital signature."

What that means for an email vote

  • Every director has to sign. One who says no, or never answers, means the board hasn't acted.
  • The action counts from the last signature, so note the date it arrives.
  • The signed consents go in the minutes, filed with the corporate records.
  • An electronic or digital signature counts if you take reasonable measures to authenticate it. A bare email reply may not meet that, so ask counsel what your board should use.

What your bylaws can change

The section opens with "Unless the articles or bylaws provide otherwise," so your articles or bylaws can forbid action without a meeting or set their own rules for it. Read both before the first vote.

Running the vote

Send one motion, in full, to every director. Set a closing time, and keep every reply with the minutes. Our guide to email votes has the steps, and the guide to unanimous written consent has a sample you can copy.

How Karma Compass handles this

Karma Compass won't draft a vote until someone on your board records what your bylaws say about voting outside a meeting, with the passage cited. Each director then votes from a link in their own email, and every vote is saved with who cast it and when. Voting is part of the Free plan.

See how board votes by email work in Karma Compass

Source

Questions this post answers

  • Can a nonprofit board vote by email in Hawaii?

    Only by the written consent of every director. Hawaii Revised Statutes section 414D-144 lets the board act without a meeting if all members of the board sign written consents describing the action. The section also says a written consent includes one executed by an electronic or digital signature, if the corporation takes reasonable measures to authenticate it.

  • Does an email vote have to be unanimous in Hawaii?

    Yes. Hawaii Revised Statutes section 414D-144 allows action without a meeting only when it is taken by all members of the board.

  • When does a written consent take effect in Hawaii?

    When the last director signs it, unless the consent specifies a different effective date.

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