Can I offer stock options to employees without violating securities laws in Hawaii? What are the requirements?

To offer stock options to employees without violating securities laws in Hawaii, you must comply with the registration and exemption requirements under the Hawaii Revised Statutes (HIRS) Chapter 431:4.

Under HIRS 431:4-209, the offer and sale of securities by a domestic stock insurance company to its employees, directors, or officers, pursuant to a written plan, is exempt from registration if the plan meets certain requirements. The plan must be in writing and must be offered to all employees, directors, or officers of the company who provide services in Hawaii. The plan must also be approved by the board of directors or a committee of the board, and the securities must be restricted securities. Additionally, the offer and sale of securities must not involve any public solicitation or advertising.

Furthermore, under HIRS 431:4-210, the offer and sale of securities by a domestic stock insurance company to its employees, directors, or officers, pursuant to a written plan, is exempt from registration if the plan meets certain requirements. The plan must be in writing and must be offered to all employees, directors, or officers of the company who provide services in Hawaii. The plan must also be approved by the board of directors or a committee of the board, and the securities must be restricted securities. Additionally, the offer and sale of securities must not involve any public solicitation or advertising.

Based on the above, you may offer stock options to employees without violating securities laws in Hawaii if you comply with the registration and exemption requirements under HIRS Chapter 431:4.

Jurisdiction

Hawaii

• General