<PAGE>
 
                                                              HEI Exhibit 3(i).3
                                                              ------------------



Filing Fee - $50.00                                              DOMESTIC PROFIT

Dishonored Check - $15.00 Fee
Plus Interest Charges



                                STATE OF HAWAII
                                        
                  DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
                         BUSINESS REGISTRATION DIVISION
                              1010 Richards Street
               Mailing Address:  P.O. Box 40, Honolulu, HI  96810

                                        
   STATEMENT OF ISSUANCE OF SHARES OF PREFERRED OR SPECIAL CLASSES IN SERIES
                   (SECTION 415-16, HAWAII REVISED STATUTES)



                                        
   The undersigned, duly authorized officers of the corporation   submitting
this Statement, certify as follows:



1.  The name of the corporation is:

                      HAWAIIAN ELECTRIC INDUSTRIES, INC.
    --------------------------------------------------------------------------



2. A copy of the resolution establishing and designating the series, and fixing
   and determining the relative rights and preferences of the new shares is
   attached.



3. The resolution was adopted on:    October  28,   1997
                                     -------------------
                                      (Month  Day  Year)


4.  The resolution was adopted by the Board of Directors.


We certify under the penalties of Section 415-136, Hawaii Revised Statutes, that
we have read the above statements, and that the same are true and correct.


Witness our hands this   28th   day of   October  , 1997.
                       --------        -----------    -- 



     /s/ Robert F. Clarke       /s/ Robert F. Mougeot
    ---------------------      ----------------------
     Robert F. Clarke           Robert F. Mougeot
     President                  Financial Vice President
<PAGE>
 
                      RESOLUTION OF THE BOARD OF DIRECTORS


                                       OF



                       HAWAIIAN ELECTRIC INDUSTRIES, INC.



                            Authorizing an Issue of

                 Series A Junior Participating Preferred Stock

                           Adopted - October 28, 1997
                           -------   ----------------



  WHEREAS, Hawaiian Electric Industries, Inc. (the "corporation") has an
authorized capital stock of one hundred million (100,000,000) shares of Common
Stock without par value and ten million (10,000,000) shares of Preferred Stock
without par value, of which 31,693,971 shares of Common Stock were issued and
outstanding as of September 30, 1997 and no shares of Preferred Stock were
issued and outstanding as of the date hereof; and

  WHEREAS, the corporation acting through its Board of Directors has power under
law and its Restated Articles of Incorporation, as amended, to issue its
authorized Preferred Stock in one or more series having such terms, preferences,
voting powers, restrictions and qualifications as shall be fixed in the
resolutions authorizing each such series; and

  WHEREAS, it is deemed advisable that the corporation authorize a series of
500,000 shares of Preferred Stock, without par value, designated as the
corporation's Series A Junior Participating Preferred Stock and having the
preferences, voting powers, restrictions and qualifications thereof hereinafter
set forth.

  NOW, THEREFORE, BE IT RESOLVED, that pursuant to the authority vested in the
Board of Directors of this corporation in accordance with the provisions of its
Restated Articles of Incorporation, as amended, and by law, a series of
Preferred Stock of the corporation be and it hereby is created, and that the
designation and

                                       1
<PAGE>
 
amount thereof and the terms, voting powers, preferences and relative,
participating, optional and other special rights of the shares of such series,
and the qualifications, limitations or restrictions thereof are as follows:

  Section 1.  Designation and Amount.  The shares of such series shall be
              ----------------------                                     
designated as "Series A Junior Participating Preferred Stock" and the number of
shares constituting such series shall be 500,000.

  Section 2.  Dividends and Distributions.
              --------------------------- 

  (A)  Subject to the prior and superior rights of the holders of any shares of
any series of Preferred Stock hereafter created which ranks prior and superior
to the shares of Series A Junior Participating Preferred Stock with respect to
dividends, the holders of shares of Series A Junior Participating Preferred
Stock shall be entitled to receive, when, as and if declared by the Board of
Directors out of funds legally available for the purpose, quarterly dividends
payable in cash on the tenth (10th) day of December, March, June and September
in each year (each such date being referred to herein as a "Quarterly Dividend
Payment Date"), commencing on the first Quarterly Dividend Payment Date after
the first issuance of a share or fraction of a share of Series A Junior
Participating Preferred Stock, in an amount per share (rounded to the nearest
cent) equal to the greater of (a) $61.00 or (b) subject to the provision for
adjustment hereinafter set forth, 100 times the aggregate per share amount of
all cash dividends, and 100 times the aggregate per share amount (payable in
kind) of all noncash dividends or other distributions other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock,
of the corporation (the "Common Stock") since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Junior Participating Preferred Stock.  In the event the
corporation shall at any time after October 28, 1997 (the "Rights Declaration
Date") (i) declare any dividend on Common Stock payable in shares of

                                       2
<PAGE>
 
Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the amount to which holders of shares of Series A Junior Participating Preferred
Stock were entitled immediately prior to such event under clause (b) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

  (B)  The corporation shall declare a dividend or distribution on the Series A
Junior Participating Preferred Stock as provided in Paragraph (A) above
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock); provided that, in the
event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of $61.00 per share on
the Series A Junior Participating Preferred Stock shall nevertheless be payable
on such subsequent Quarterly Dividend Payment Date.


  (C)  Dividends shall begin to accrue and be cumulative on outstanding shares
of Series A Junior Participating Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Junior
Participating Preferred Stock, unless the date of issue of such shares is prior
to the record date for the first Quarterly Dividend Payment Date, in which case
dividends on such shares shall begin to accrue from the date of issue of such
shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a
date after the record date for the determination of holders of shares of Series
A Junior Participating Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend
Payment Date.  Accrued but unpaid dividends shall not bear interest. Dividends
paid on the shares of Series A

                                       3
<PAGE>
 
Junior Participating Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a sharebyshare basis among all such shares at the time outstanding.
The Board of Directors may fix a record date for the determination of holders of
shares of Series A Junior Participating Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall
be no more than 30 days prior to the date fixed for the payment thereof.

  Section 3.  Voting Rights.  The holders of shares of Series A Junior
              -------------                                           
Participating Preferred Stock shall have the following voting rights:

  (A)  Subject to the provision for adjustment hereinafter set forth, each share
of Series A Junior Participating Preferred Stock shall entitle the holder
thereof to 100 votes on all matters submitted to a vote of the stockholders of
the corporation.  In the event the corporation shall at any time after the
Rights Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii)
combine the outstanding Common Stock into a smaller number of shares, then in
each such case the number of votes per share to which holders of shares of
Series A Junior Participating Preferred Stock were entitled immediately prior to
such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

  (B)  Except as otherwise provided herein or by law, the holders of shares of
Series A Junior Participating Preferred Stock and the holders of shares of
Common Stock shall vote together as one class on all matters submitted to a vote
of stockholders of the corporation.

  (C)  (i)  If at any time dividends on any Series A Junior Participating
Preferred Stock shall be in arrears in an amount equal to six (6) quarterly
dividends

                                       4
<PAGE>
 
thereon, the occurrence of such contingency shall mark the beginning of a period
(herein called a "default period") which shall extend until such time when all
accrued and unpaid dividends for all previous quarterly dividend periods and for
the current quarterly dividend period on all shares of Series A Junior
Participating Preferred Stock then outstanding shall have been declared and paid
or set apart for payment.  During each default period, all holders of Series A
Junior Participating Preferred Stock with dividends in arrears in an amount
equal to six (6) quarterly dividends thereon, voting as a class together with
holders of Preferred Stock who, by the terms thereof, are then entitled to vote
thereon, irrespective of series, shall have the right to elect two (2)
directors, which directors shall be in addition to the number of directors
otherwise then provided for.  Such right to elect two directors is in addition
to the voting rights afforded holders of Series A Junior Participating Preferred
Stock set forth in Section 3(B) above.

  (ii)  During any default period, such voting right of the holders of Series A
Junior Participating Preferred Stock may be exercised initially at a special
meeting called pursuant to subparagraph (iii) of this Section 3(C) or at any
annual meeting of stockholders, and thereafter at annual meetings of
stockholders, provided that neither such voting right nor the right of the
holders of any other series of Preferred Stock, if any, to increase, in certain
cases, the authorized number of directors shall be exercised unless the holders
of ten percent (10%) in number of shares of Preferred Stock outstanding shall be
present in person or by proxy.  The absence of a quorum of the holders of Common
Stock shall not affect the exercise by the holders of Preferred Stock of such
voting right.  At any meeting at which the holders of Preferred Stock shall
exercise such voting right initially during an existing default period, they
shall have the right, voting as a class, to elect directors to fill such
vacancies, if any, in the Board of Directors as may then exist up to two (2)
directors or, if such right is exercised at an annual meeting, to elect two (2)
directors.  If the number which may be so elected at any special meeting does
not amount to the required number, the holders of the Preferred Stock shall have
the right to make such increase in the number of directors as shall

                                       5
<PAGE>
 
be necessary to permit the election by them of the required number.  After the
holders of the Preferred Stock shall have exercised their right to elect
directors in any default period and during the continuance of such period, the
number of directors shall not be increased or decreased except by vote of the
holders of Preferred Stock as herein provided or pursuant to the rights of any
equity securities ranking senior to or pari passu with the Series A Junior
                                       ---- -----                         
Participating Preferred Stock.

  (iii)  Unless the holders of Preferred Stock shall, during an existing default
period, have previously exercised their right to elect directors, the Board of
Directors may order, or any stockholder or stockholders owning in the aggregate
not less than ten percent (10%) of the total number of shares of Preferred Stock
outstanding, irrespective of series, may request, the calling of a special
meeting of the holders of Preferred Stock, which meeting shall thereupon be
called by the President, a VicePresident or the Secretary of the corporation.
Notice of such meeting and of any annual meeting at which holders of Preferred
Stock are entitled to vote pursuant to this Paragraph (C)(iii) shall be given to
each holder of record of Preferred Stock by mailing a copy of such notice to him
at his last address as the same appears on the books of the corporation.  Such
meeting shall be called for a time not earlier than 20 days and not later than
60 days after such order or request or in default of the calling of such meeting
within 60 days after such order or request, such meeting may be called on
similar notice by any stockholder or stockholders owning in the aggregate not
less than ten percent (10%) of the total number of shares of Preferred Stock
outstanding.  Notwithstanding the provisions of this Paragraph (C)(iii), no such
special meeting shall be called during the period within 60 days immediately
preceding the date fixed for the next annual meeting of the stockholders.

  (iv)  In any default period, the holders of Common Stock, and other classes of
stock of the corporation if applicable, shall continue to be entitled to elect
the whole number of directors until the holders of Preferred Stock shall have
exercised their right to elect two (2) directors voting as a class, after the
exercise

                                       6
<PAGE>
 
of which right (x) the directors so elected by the holders of Preferred Stock
shall continue in office until their successors shall have been elected by such
holders or until the expiration of the default period, and (y) any vacancy in
the Board of Directors may (except as provided in Paragraph (C)(ii) of this
Section 3) be filled by vote of a majority of the remaining directors
theretofore elected by the holders of the class of stock which elected the
director whose office shall have become vacant.  References in this Paragraph
(C) to directors elected by the holders of a particular class of stock shall
include directors elected by such directors to fill vacancies as provided in
clause (y) of the foregoing sentence.

  (v)  Immediately upon the expiration of a default period, (x) the right of the
holders of Preferred Stock as a class to elect directors shall cease, (y) the
term of any directors elected by the holders of Preferred Stock as a class shall
terminate, and (z) the number of directors shall be such number as may be
provided for in the certificate of incorporation or bylaws irrespective of any
increase made pursuant to the provisions of Paragraph (C)(ii) of this Section 3
(such number being subject, however, to change thereafter in any manner provided
by law or in the certificate of incorporation or bylaws).  Any vacancies in the
Board of Directors effected by the provisions of clauses (y) and (z) in the
preceding sentence may be filled by a majority of the remaining directors.

  (D)  Except as set forth herein, holders of Series A Junior Participating
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for taking any corporate action.

  Section 4.  Certain Restrictions.
              -------------------- 

  (A)  Whenever quarterly dividends or other dividends or distributions payable
on the Series A Junior Participating Preferred Stock as provided in Section 2
are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not de-

                                       7
<PAGE>
 
clared, on shares of Series A Junior Participating Preferred Stock outstanding
shall have been paid in full, the corporation shall not


     (i)  declare or pay dividends on, make any other distributions on, or
   redeem or purchase or otherwise acquire for consideration any shares of stock
   ranking junior (either as to dividends or upon liquidation, dissolution or
   winding up) to the Series A Junior Participating Preferred Stock;

     (ii)  declare or pay dividends on or make any other distributions on any
   shares of stock ranking on a parity (either as to dividends or upon
   liquidation, dissolution or winding up) with the Series A Junior
   Participating Preferred Stock, except dividends paid ratably on the Series A
   Junior Participating Preferred Stock and all such parity stock on which
   dividends are payable or in arrears in proportion to the total amounts to
   which the holders of all such shares are then entitled;

     (iii)  redeem or purchase or otherwise acquire for consideration shares of
   any stock ranking on a parity (either as to dividends or upon liquidation,
   dissolution or winding up) with the Series A Junior Participating Preferred
   Stock, provided that the corporation may at any time redeem, purchase or
   otherwise acquire shares of any such parity stock in exchange for shares of
   any stock of the corporation ranking junior (either as to dividends or upon
   dissolution, liquidation or winding up) to the Series A Junior Participating
   Preferred Stock; or

     (iv)  purchase or otherwise acquire for consideration any shares of Series
   A Junior Participating Preferred Stock, or any shares of stock ranking on a
   parity with the Series A Junior Participating Preferred Stock, except in
   accordance with a purchase offer made in writing or by publication (as
   determined by the

                                       8
<PAGE>
 
   Board of Directors) to all holders of such shares upon such terms as the
   Board of Directors, after consideration of the respective annual dividend
   rates and other relative rights and preferences of the respective series and
   classes, shall determine in good faith will result in fair and equitable
   treatment among the respective series or classes.

  (B)  The corporation shall not permit any subsidiary of the corporation to
purchase or otherwise acquire for consideration any shares of stock of the
corporation unless the corporation could, under Paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.

  Section 5.  Reacquired Shares.  Any shares of Series A Junior Participating
              -----------------                                              
Preferred Stock purchased or otherwise acquired by the corporation in any manner
whatsoever shall be retired and cancelled promptly after the acquisition
thereof.  All such shares shall upon their cancellation become authorized but
unissued shares of Preferred Stock and may be reissued as part of a new series
of Preferred Stock to be created by resolution or resolutions of the Board of
Directors, subject to the conditions and restrictions on issuance set forth
herein.

  Section 6.  Liquidation, Dissolution or Winding Up.
              -------------------------------------- 

  (A)  Upon any liquidation (voluntary or otherwise), dissolution or winding up
of the corporation, no distribution shall be made to the holders of shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Junior Participating Preferred Stock unless, prior
thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received an amount equal to $100 per share of Series A Participating
Preferred Stock, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the
"Series A Liquidation Preference"). Following the payment of the full amount of
the Series A Liquidation Preference, no additional distributions shall be made
to the holders of

                                       9
<PAGE>
 
shares of Series A Junior Participating Preferred Stock unless, prior thereto,
the holders of shares of Common Stock shall have received an amount per share
(the "Common Adjustment") equal to the quotient obtained by dividing (i) the
Series A Liquidation Preference by (ii) 100 (as appropriately adjusted as set
forth in subparagraph (C) below to reflect such events as stock splits, stock
dividends and recapitalizations with respect to the Common Stock) (such number
in clause (ii), the "Adjustment Number").  Following the payment of the full
amount of the Series A Liquidation Preference and the Common Adjustment in
respect of all outstanding shares of Series A Junior Participating Preferred
Stock and Common Stock, respectively (together with payment of the full amounts
due in respect of any series of Preferred Stock which ranks on a parity with the
Series A Junior Participating Preferred Stock), and without limitation on the
amounts due to any holders of any series of Preferred Stock which ranks on a
parity with the Series A Junior Participating Preferred Stock, holders of Series
A Junior Participating Preferred Stock and holders of shares of Common Stock
shall receive their ratable and proportionate share of the remaining assets to
be distributed in the ratio of the Adjustment Number to 1 with respect to such
Preferred Stock and Common Stock, on a per share basis, respectively.

  (B)  In the event, however, that there are not sufficient assets available to
permit payment in full of the Series A Liquidation Preference and the
liquidation preferences of all other series of Preferred Stock, if any, which
rank on a parity with the Series A Junior Participating Preferred Stock, then
such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences.  In the event,
however, that there are not sufficient assets available to permit payment in
full of the Common Adjustment, then such remaining assets shall be distributed
ratably to the holders of Common Stock.

  (C)  In the event the corporation shall at any time after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock, or

                                       10
<PAGE>
 
(iii) combine the outstanding Common Stock into a smaller number of shares, then
in each such case the Adjustment Number in effect immediately prior to such
event shall be adjusted by multiplying such Adjustment Number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

  Section 7.  Consolidation, Merger, etc.  In case the corporation shall enter
              --------------------------                                      
into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 100 times the aggregate amount of
stock, securities, cash and/or any other property (payable in kind), as the case
may be, into which or for which each share of Common Stock is changed or
exchanged.  In the event the corporation shall at any time after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the amount set forth in the preceding sentence with respect to the exchange or
change of shares of Series A Junior Participating Preferred Stock shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

  Section 8.  No Redemption.  The shares of Series A Junior Participating
              -------------                                              
Preferred Stock shall not be redeemable.

  Section 9.  Ranking.  The Series A Junior Participating Preferred Stock shall
              -------                                                          
rank junior to all other series of the corporation's Preferred Stock as to the

                                       11
<PAGE>
 
payment of dividends and the distribution of assets, unless the terms of any
such series shall provide otherwise.

  Section 10.  Amendment.  At any time when any shares of Series A Junior
               ---------                                                 
Participating Preferred Stock are outstanding, neither the Restated Articles of
Incorporation of the corporation nor the Statement of Issuance of Shares of
Preferred or Special Classes in Series shall be amended in any manner which
would materially alter or change the powers, preferences or special rights of
the Series A Junior Participating Preferred Stock so as to affect them adversely
without the affirmative vote of the holders of a majority or more of the
outstanding shares of Series A Junior Participating Preferred Stock, voting
separately as a class.

  Section 11.  Fractional Shares.  Series A Junior Participating Preferred Stock
               -----------------                                                
may be issued in fractions of a share which are integral multiples of one one-
hundredth of a share of Preferred Stock, which shall entitle the holder, in
proportion to such holder's fractional shares, to exercise voting rights,
receive dividends, participate in distributions and to have the benefit of all
other rights of holders of Series A Junior Participating Preferred Stock.

  FURTHER RESOLVED, that any two officers of the corporation be, and they hereby
are, authorized and directed to execute and file with the Department of Commerce
and Consumer Affairs of the State of Hawaii a "Statement of Issuance of Shares
of Preferred or Special Classes in Series," to which this resolution shall be
annexed.

                                       12