HAR §16-39-350. Purpose

The purpose of sections 16- 39-350 to 16-39-355 is to encourage investment in small businesses, and provide a method of registration for small companies offering securities to the public. The commissioner recognizes that small issuers raising small amounts of money face special problems not faced by issuers raising larger amounts, and that standards appropriate to registrations of larger offerings may become unduly burdensome when applied to registrations of small offerings. The registration method offered by sections 16-39-350 to 16-39-355 is intended to reduce the costs and burdens of raising capital for small business and to maximize the amount of offering proceeds available to the issuer for investment in the business, without sacrificing investor protection. Issuers eligible for this method of registration shall use the SCOR registration form as the disclosure document for the offering. [Eff 6/30/08; comp 11/18/23] (Auth: HRS §485A-606) (Imp: HRS §§485A- 303, 485A-606) §16-39-351 Application of this chapter to SCOR registrations. (a) The provisions of subchapter 3 shall apply to SCOR registrations; provided that section 16-39-311 relating to financial reports, and section 16-39-330 relating to SEC effective dates shall not apply. (b) The commissioner reserves the right to apply this chapter (or any provision therein) to offerings under sections 16-39-350 to 16-39-355 if the §16-39-352 39-37 commissioner determines that such application, even in the small business offering context, is necessary for the protection of investors. [Eff 6/30/08; comp 11/18/23] (Auth: HRS §485A-606) (Imp: HRS §§485A- 303, 485A-606)