This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.

Convertible Note Cap Table in Hawaii

Under Hawaii law, the treatment of convertible notes on a cap table is governed by the terms of the note and the general corporate provisions of Haw. Rev. Stat. § 414-51, which addresses the issuance of shares and the rights of holders. This statute outlines how a corporation may issue shares, including those issuable upon conversion of convertible instruments, and provides the framework for determining resulting ownership percentages. Specific conversion mechanics, such as valuation caps, discount rates, and interest conversion, are defined in the note itself, not in the statute. The official source at the link contains the exact statutory language. The example below demonstrates how a typical conversion affects the cap table. Use the DocketMath calculator to estimate how a specific convertible note would adjust ownership in your Hawaii corporation.

Governing authority

In Hawaii, the convertible note cap table rule is set by Haw. Rev. Stat. § 414-51. The verified packet cites Haw. Rev. Stat. § 414-51 (https://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0414-0432F/HRS0414/HRS_0414-0051.htm).

Hawaii convertible note cap table: governed by Haw. Rev. Stat. § 414-51. The verified packet cites Haw. Rev. Stat. § 414-51 (https://www.capitol.hawaii.gov/hrscurrent/Vol09_Ch0414-0432F/HRS0414/HRS_0414-0051.htm).

Estimate your own result: every situation has exceptions that can change the outcome. Use the convertible note cap table calculator to estimate your specific figure.

This page provides general legal information and calculation tools, not legal advice. DocketMath is not a law firm and does not provide legal representation, and using this site does not create an attorney-client relationship. Laws change and exceptions apply, so deadlines and amounts specific to your situation should be confirmed with a licensed attorney in your jurisdiction.