Oklahoma Senate Bill SB1362

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

Corporations; modifying General Corporation Act. Effective date

Impact

The amendments outlined in SB1362 are expected to clarify and streamline certain processes in corporate governance within Oklahoma. The bill permits directors to take emergency actions without the usual procedural formalities, thus allowing for swift responses to unforeseen situations. Additionally, the changes affirm the integrity of professional entities by restricting interest holdings to duly licensed individuals, ensuring that professional corporations maintain ethical standards of operation.

Summary

Senate Bill 1362, introduced by Montgomery, proposes amendments to the Oklahoma General Corporation Act, focusing on various structural aspects relating to corporations. Notable changes include updated definitions of professional entities and revisions in shareholder voting rights, consent requirements, electronic notices, and the procedures for adopting emergency bylaws. These changes reflect a modernized approach towards the governance of corporations that aims to enhance operational efficiency while ensuring that the responsibilities and rights of shareholders are clearly defined.

Contention

Points of contention likely arise from the provisions regarding shareholder rights, particularly the modifications to the requirements for corporate actions such as mergers and the removal of directors. Critics might argue that these changes could weaken shareholder influence and oversight on significant corporate decisions. Furthermore, the bill's provisions for electronic notices and the lack of certain requirements for emergency bylaws could raise concerns about transparency during critical decision-making processes.