Opinion ID: 1126567
Heading Depth: 1
Heading Rank: 3

Heading: stockholders and creditors entitled to procedural due process

Text: The anomaly of this situation gives rise to a constitutional infirmity wherein a stockholder's or creditor's property is subject to deprivation without him having his day in court. [13] Basic requisites of due process guarantee that where property rights may be affected, notice and an opportunity to be heard must be afforded to all interested persons. Mortensen v. Emp. Ret. Syst. Trustees, 52 Haw. 212, 219-221, 473 P.2d 866, 871-872 (1970); Territory v. Jennie L. Aona et al., 43 Haw. 253, 255 (1959). How then are these rights to be protected? [14] Because of the constitutional dilemma presented, public policy dictates that an exception be made at this time to the prohibition against one engaging in the unauthorized practice of law. [15] In the limited situation where the statutory liquidator makes a showing that corporate funds are unavailable for the hiring of counsel, he may perform the necessary legal services.