Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB228 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
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	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 228 By: Montgomery of the Senate
7	37
8	38		and
9	39
10	40		O’Donnell of the House
11	41
12	42
13	43
14	44
15	45		An Act relating to business entities; amending 18
16	46		O.S. 2011, Section 1012, as amended by Section 1,
17	47		Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020, Section
18	48		1012), which relates to the Oklahoma General
19	49		Corporation Act; authorizing electronic transmission
20	50		of certain notice; clarifying procedures for certain
21	51		consent effective on future date; establishing
22	52		procedures for certain document form, signature and
23	53		delivery; authorizing certain electronic
24	54		transactions; providing exceptions; clarifying
25	55		applicability of provisions; amending 18 O.S. 2011,
26	56		Sections 1032, 1033, a s amended by Section 7, Chapter
27	57		323, O.S.L. 2017, 1038, Section 9, Chapter 323,
28	58		O.S.L. 2017, 1064, as amended by Section 14, Chapter
29	59		323, O.S.L. 2017, 1069, 1073, as amended by Section
30	60		19, Chapter 323, O.S.L. 2017, 1075.2, as amended by
31	61		Section 14, Chapter 88, O.S.L. 2019, 1081, as amended
32	62		by Section 22, Chapter 323, O.S.L. 2017, 1082, as
33	63		amended by Section 23, Chapter 323, O.S.L. 2017,
34	64		Section 24, Chapter 323, O.S.L. 2017, 1090.3, as
35	65		amended by Section 25, Chapter 323, O.S.L. 2017,
36	66		1090.4, as amended by Se ction 23, Chapter 88, O.S.L.
37	67		2019, 1090.5, as amended by Section 24, Chapter 88,
38	68		O.S.L. 2019 and 1091, as amended by Section 26,
39	69		Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
40	70		Sections 1033, 1055.1, 1064, 1073, 1075.2, 1081,
41	71		1082, 1083.1, 1090.3 , 1090.4, 1090.5 and 1091), which
42	72		relate to the Oklahoma General Corporation Act;
43	73		authorizing electronic transmission of certain
44	74		notice; modifying procedures for issuance of capital
45	75		stock; establishing minimum amount of consideration
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46	103		for issuance of shares; authorizin g stock price to be
47		-
48		-	ENR. S. B. NO. 228 Page 2
49	104		fixed by certain formula; conforming language;
50	105		modifying requirements for certain ratification vote;
51	106		modifying definitions; requiring corporation to
52	107		prepare list of certain shareholders within specified
53	108		time period; defining term; speci fying functions of
54	109		certain ledger; expanding methods of delivery of
55	110		consents given by electronic transmission; modifying
56	111		definition; clarifying usage of certain terms;
57	112		conforming language; adding information required for
58	113		inclusion in certain agreements; pe rmitting mergers
59	114		and consolidations under certain circumstances;
60	115		clarifying effective date of amendments to
61	116		certificates of incorporation; conforming appraisal
62	117		rights to certain mergers; amending 18 O.S. 2011,
63	118		Sections 2001, as amended by Section 37, Chapt er 323,
64	119		O.S.L. 2017, 2010, 2016, 2054.1, as amended by
65	120		Section 52, Chapter 323, O.S.L. 2017, 2054.2, as
66	121		amended by Section 53, Chapter 323, O.S.L. 2017 (18
67	122		O.S. Supp. 2020, Sections 2001, 2054.1 and 2054.2),
68	123		which relate to the Oklahoma Limited Liability
69	124		Company Act; modifying definitions; clarifying
70	125		entities that may act as registered agents;
71	126		authorizing delegation of certain manager duties;
72	127		authorizing conversion of certain entities; creating
73	128		the Oklahoma Public Benefit Limited Liability Company
74	129		Act; providing short title; defining terms;
75	130		establishing requirements and procedures for
76	131		formation and operation of public benefit limited
77	132		liability companies; establishing rights and duties
78	133		of managers and members of certain companies;
79	134		requiring reporting of certa in activities;
80	135		authorizing derivative lawsuit to enforce certain
81	136		requirements; clarifying applicability of provisions;
82	137		construing provisions; amending 54 O.S. 2011, Section
83	138		500-114A, which relates to the Uniform Limited
84	139		Partnership Act; clarifying entities that may act as
85	140		registered agents; updating statutory references;
86	141		providing for codification; and providing an
87	142		effective date.
88	143
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90	145
91	146
92		-	ENR. S. B. NO. 228 Page 3
93		-
94		-	SUBJECT: Business entities
95		-
96	147		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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97	174
98	175		SECTION 1. AMENDATORY 18 O.S. 2011, Section 1012, as
99	176		amended by Section 1, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
100	177		Section 1012), is amended to read as follows:
101		-
102	178		Section 1012.
103		-
104	179		ORGANIZATION MEETING OF INCORPORATORS OR DIRECTORS NAMED IN
105	180		CERTIFICATE OF INCORPORATION
106		-
107	181		A. After the filing of the ce rtificate of incorporation, an
108	182		organization meeting of the incorporator or incorporators, or of the
109	183		board of directors if the initial directors were named in the
110	184		certificate of incorporation, shall be held either within or without
111	185		this state at the call of a majority of the incorporators or
112	186		directors, as the case may be, for the purposes of adopting bylaws,
113	187		electing directors if the meeting is of the incorporators, to serve
114	188		or hold office until the first annual meeting of shareholders or
115	189		until their successors are elected and qualify, electing officers if
116	190		the meeting is of the directors, doing any other or further acts to
117	191		perfect the organization of the corporation, and transacting such
118	192		other business as may come before the meeting.
119		-
120	193		B. The persons calling t he meeting shall give to each other
121	194		incorporator or director, as the case may be, at least two (2) days ’
122	195		written notice thereof in writing or by electronic transmission by
123	196		any usual means of communication, which notice shall state the time,
124	197		place and purposes of the meeting as fixed by the persons calling
125	198		it. Notice of the meeting need not be given to anyone who attends
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126	226		the meeting or who signs a waiver of notice either before or after
127	227		the meeting.
128		-
129	228		C. Any action permitted to be taken at the organization m eeting
130	229		of the incorporators or directors, as the case may be, may be taken
131	230		without a meeting if each incorporator or director, where there is
132	231		more than one, or the sole incorporator or director where there is
133	232		only one, signs an instrument which states the action so taken
134	233		consents thereto in writing or by electronic transmission. Any
135		-
136		-	ENR. S. B. NO. 228 Page 4
137	234		person whether or not then an incorporator or director may provide,
138	235		whether through instruction to an agent or otherwise, that a consent
139	236		to action will be effective at a future time including a time
140	237		determined upon the happening of an event, no later than sixty (60)
141	238		days after such instruction is given or such provision is made and
142	239		such consent shall be deemed to have been given for purposes of this
143	240		subsection at such effective time so long as such person is then an
144	241		incorporator or director, as the case may be, and did not revoke the
145	242		consent prior to such time. Any such consent shall be revocable
146	243		prior to its becoming effective .
147		-
148	244		D. If any incorporator is not available to act, t hen any person
149	245		for whom or on whose behalf the incorporator was acting directly or
150	246		indirectly as employee or agent may take any action that such
151	247		incorporator would have been authorized to take under this section
152	248		or Section 1011 of this title; provided, tha t any instrument signed
153	249		by such other person, or any record of the proceedings of a meeting
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154	277		in which such person participated, shall state that such
155	278		incorporator is not available and the reason therefor, that such
156	279		incorporator was acting directly or indire ctly as employee or agent
157	280		for or on behalf of such person, and that such person ’s signature on
158	281		such instrument or participation in such meeting is otherwise
159	282		authorized and not wrongful.
160		-
161	283		SECTION 2. NEW LAW A new section of law to be codified
162	284		in the Oklahoma Statutes as Section 1014.3 of Title 18, unless there
163	285		is created a duplication in numbering, reads as follows:
164		-
165	286		DOCUMENT FORM, SIGNATURE AND DELIVERY
166		-
167	287		A. Except as provided in subsection B of this section, without
168	288		limiting the manner in which any act or transaction may be
169	289		documented, or the manner in which a document may be signed or
170	290		delivered:
171		-
172	291		1. Any act or transaction contemplated or governed by this
173	292		title or the certificate of incorporation or bylaws may be provided
174	293		for in a document, and an electronic transmission shall be deemed the
175	294		equivalent of a written document. “Document” means (i) any tangible
176	295		medium on which information is inscribed, and includes handwritten,
177	296		typed, printed or similar instruments, and copies of such
178	297		instruments and (ii) an electronic transmission;
179		-
180		-	ENR. S. B. NO. 228 Page 5
181		-
182	298		2. Whenever this act or the certificate of incorporation or
183	299		bylaws requires or permits a signature, the signature may be a
184	300		manual, facsimile, conformed or electronic signature. “Electronic
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185	328		signature” means an electronic symbol or process that is attached to,
186	329		or logically associated with, a document and executed or adopted by
187	330		a person with an intent to authenticate or adopt the document; and
188		-
189	331		3. Unless otherwise agreed between the sender and recipient, an
190	332		electronic transmission shall be deemed delivered to a person for
191	333		purposes of this title and the certificate of incorporation and
192	334		bylaws when it enters an information processing system that the
193	335		person has designated for the purpose of receiving electronic
194	336		transmissions of the type delivered, so long as the electronic
195	337		transmission is in a form capable of being processed by that system
196	338		and such person is able to retrieve the electronic transmission.
197	339		Whether a person has so designated an information processing system
198	340		is determined by the certificate of incorporation, the bylaws or from
199	341		the context and surrounding circumstances including the parties ’
200	342		conduct. An electronic transmission is delivered under this section
201	343		even if no person is aware of its receipt. Receip t of an electronic
202	344		acknowledgement from an information processing system establishes
203	345		that an electronic transmission was received but, by itself, does
204	346		not establish that the content sent corresponds to the content
205	347		received.
206		-
207	348		This act shall not prohibit one or more persons from conducting a
208	349		transaction in accordance with the Uniform Electronic Transaction Act
209	350		so long as the part or parts of the transaction that are governed by
210	351		this act are documented, signed and delivered in accordance with this
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211	379		subsection or otherwise in accordance with this act. This subsection
212	380		shall apply solely for purposes of determining whether an act or
213	381		transaction has been documented, and the document has been signed and
214	382		delivered, in accordance with this act, the certificate of
215	383		incorporation and the bylaws.
216		-
217	384		B. Subsection A of this section shall not apply to:
218		-
219	385		1. A document filed with or submitted to the Secretary of State
220	386		or a court or other judicial or governmental body of this state;
221		-
222	387		2. A document comprising part of the stock ledg er;
223		-
224		-	ENR. S. B. NO. 228 Page 6
225		-
226	388		3. A certificate representing a security;
227		-
228	389		4. Any document expressly referenced as a notice or waiver of
229	390		notice by this act, the certificate of incorporation or bylaws;
230		-
231	391		5. A consent in lieu of a meeting given by a director,
232	392		shareholder or incorporato r;
233		-
234	393		6. A ballot to vote on actions at a meeting of shareholders;
235	394		and
236		-
237	395		7. An act or transaction effected pursuant to Section 1100.1 of
238	396		Title 18 of the Oklahoma Statutes.
239		-
240	397		The provisions of this subsection shall not create any
241	398		presumption about the lawful means to document a matter addressed by
242	399		this subsection, or the lawful means to sign or deliver a document
243	400		addressed by this subsection. A provision of the certificate of
244	401		incorporation or bylaws shall not limit the application of subsection
245	402		A of this section unless the provision expressly restricts one or
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246	430		more of the means of documenting an act or transaction, or of signing
247	431		or delivering a document, permitted by subsection A of this section.
248		-
249	432		C. In the event that any provision of this act is deemed to
250	433		modify, limit or supersede the Electronic Signatures in Global and
251	434		National Commerce Act, 15 U.S.C. Sections 7001 et. seq., the
252	435		provisions of this act shall control to the fullest extent permitted
253	436		by Section 7002(a)(2) of such act.
254		-
255	437		SECTION 3. AMENDATORY 18 O.S. 2011, Section 1032, is
256	438		amended to read as follows:
257		-
258	439		Section 1032.
259		-
260	440		CLASSES AND SERIES OF STOCK; RIGHTS, ETC.
261		-
262	441		A. Every corporation may issue one or more classes of stock or
263	442		one or more series of stock within any class thereof, any or all of
264	443		which classes may be of stock with par value or stock without par
265	444		value and which classes or series may have voting powers, full or
266	445		limited, or no voting powers, and designations, preferences and
267		-
268		-	ENR. S. B. NO. 228 Page 7
269	446		relative, participating, optional, or other special rights, and
270	447		qualifications, limitations, or restrictions thereof, as shall be
271	448		stated and expressed in the certificate of incorporation or of any
272	449		amendment thereto, or in the resolution or resolutions providing for
273	450		the issue of the stock adopted by the boar d of directors pursuant to
274	451		authority expressly vested in it by the provisions of its
275	452		certificate of incorporation. Any of the voting powers,
276	453		designations, preferences, rights, and qualifications, limitations
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277	481		or restrictions of any class or series of stock may be made
278	482		dependent upon facts ascertainable outside the certificate of
279	483		incorporation or of any amendment thereto, or outside the resolution
280	484		or resolutions providing for the issue of the stock adopted by the
281	485		board of directors pursuant to authority expr essly vested in it by
282	486		the provisions of its certificate of incorporation; provided, that
283	487		the manner in which the facts shall operate upon the voting powers,
284	488		designations, preferences, rights, and qualifications, limitations,
285	489		or restrictions of the class or series of stock is clearly and
286	490		expressly set forth in the certificate of incorporation or in the
287	491		resolution or resolutions providing for the issue of the stock
288	492		adopted by the board of directors. The power to increase or
289	493		decrease or otherwise adjust the c apital stock as provided for in
290	494		the Oklahoma General Corporation Act shall apply to all or any such
291	495		classes of stock. The term “facts”, as used in this subsection,
292	496		includes, but is not limited to, the occurrence of any event,
293	497		including a determination or action by any person or body, including
294	498		the corporation.
295		-
296	499		B. Any stock of any class or series may be made subject to
297	500		redemption by the corporation at its option or at the option of the
298	501		holders of the stock or upon the happening of a specified event;
299	502		provided, however, immediately following any redemption, the
300	503		corporation shall have outstanding one or more shares or one or more
301	504		classes or series of stock, which share, or shares together, shall
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302	532		have full voting powers. Notwithstanding the limitation stated i n
303	533		the foregoing proviso:
304		-
305	534		1. Any stock of a regulated investment company registered under
306	535		the Investment Company Act of 1940, as heretofore or hereafter
307	536		amended, may be made subject to redemption by the corporation at its
308	537		option or at the option of the hol ders of the stock.
309		-
310		-
311		-	ENR. S. B. NO. 228 Page 8
312	538		2. Any stock of a corporation which directly or indirectly
313	539		holds a license or franchise from a governmental agency to conduct
314	540		its business or is a member of a national securities exchange, which
315	541		license, franchise, or membership is cond itioned upon some or all of
316	542		the holders of its stock possessing prescribed qualifications, may
317	543		be made subject to redemption by the corporation to the extent
318	544		necessary to prevent the loss of the license, franchise , or
319	545		membership or to reinstate it. Any st ock which may be made
320	546		redeemable under this section may be redeemed for cash, property , or
321	547		rights, including securities of the same or another corporation, at
322	548		such time or times, price or prices, or rate or rates, and with any
323	549		adjustments, as shall be stat ed in the certificate of incorporation
324	550		or in the resolution or resolutions providing for the issue of the
325	551		stock adopted by the board of directors as provided for in
326	552		subsection A of this section.
327		-
328	553		C. The holders of preferred or special stock of any class or of
329	554		any series thereof shall be entitled to receive dividends at such
330	555		rates, conditions, and times as shall be stated in the certificate
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331	583		of incorporation or in the resolution or resolutions providing for
332	584		the issue of the stock adopted by the board of direc tors as provided
333	585		for in subsection A of this section, payable in preference to, or in
334	586		relation to, the dividends payable on any other class or classes or
335	587		of any other series of stock, and cumulative or noncumulative as
336	588		shall be so stated and expressed. Wh en dividends upon the preferred
337	589		and special stocks, if any, to the extent of the preference to which
338	590		the stocks are entitled, shall have been paid or declared and set
339	591		apart for payment, a dividend on the remaining class or classes or
340	592		series of stock may th en be paid out of the remaining assets of the
341	593		corporation available for dividends as otherwise provided for in the
342	594		Oklahoma General Corporation Act.
343		-
344	595		D. The holders of the preferred or special stock of any class
345	596		or of any series thereof shall be entitled t o the rights upon the
346	597		dissolution of, or upon any distribution of the assets of, the
347	598		corporation as shall be stated in the certificate of incorporation
348	599		or in the resolution or resolutions providing for the issue of the
349	600		stock adopted by the board of directo rs as provided for in
350	601		subsection A of this section.
351		-
352	602		E. Any stock of any class or of any series thereof may be made
353	603		convertible into, or exchangeable for, at the option of either the
354		-
355		-	ENR. S. B. NO. 228 Page 9
356	604		holder or the corporation or upon the happening of a specified
357	605		event, shares of any other class or classes or any other series of
358	606		the same or any other class or classes of stock of the corporation,
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359	634		at the price or prices or at the rate or rates of exchange, and with
360	635		adjustments as shall be stated in the certificate of incorpora tion
361	636		or in the resolution or resolutions providing for the issue of the
362	637		stock adopted by the board of directors as provided for in
363	638		subsection A of this section.
364		-
365	639		F. If any corporation shall be authorized to issue more than
366	640		one class of stock or more than o ne series of any class, the powers,
367	641		designations, preferences , and relative, participating, optional , or
368	642		other special rights of each class of stock or series thereof and
369	643		the qualifications, limitations , or restrictions of such preferences
370	644		or rights shall be set forth in full or summarized on the face or
371	645		back of the certificate which the corporation shall issue to
372	646		represent the class or series of stock; provided that, except as
373	647		otherwise provided for in Section 1055 of this title, in lieu of the
374	648		foregoing requirements, there may be set forth on the face or back
375	649		of the certificate which the corporation shall issue to represent
376	650		the class or series of stock, a statement that the corporation will
377	651		furnish without charge to each shareholder who so requests the
378	652		powers, designations, preferences , and relative, participating,
379	653		optional, or other special rights of each class of stock or series
380	654		thereof and the qualifications, limitations , or restrictions of the
381	655		preferences or rights. Within a reasonable time after the i ssuance
382	656		or transfer of uncertificated stock, the corporation shall send to
383	657		the registered owner thereof a written notice, in writing or by
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384	685		electronic transmission, containing the information required to be
385	686		set forth or stated on certificates pursuant to th is section or
386	687		Section 1037, subsection A of Section 1055 or subsection A of
387	688		Section 1063 of this title, or with respect to this section a
388	689		statement that the corporation will furnish without charge to each
389	690		shareholder who so requests the powers, designation s, preferences,
390	691		and relative, participating, optional , or other special rights of
391	692		each class of stock or series thereof and the qualifications,
392	693		limitations, or restrictions of the preferences or rights. Except
393	694		as otherwise expressly provided by law, the r ights and obligations
394	695		of the holders of uncertificated stock and the rights and
395	696		obligations of the holder of certificates representing stock of the
396	697		same class and series shall be identical.
397		-
398		-
399		-	ENR. S. B. NO. 228 Page 10
400	698		G. 1. When any corporation desires to issue any shares of
401	699		stock of any class or of any series of any class of which the
402	700		powers, designations, preferences , and relative, participating,
403	701		optional, or other rights, if any, or the qualifications,
404	702		limitations, or restrictions thereof, if any, shall not have been
405	703		set forth in the certificate of incorporation or in any amendment
406	704		thereto but shall be provided for in a resolution or resolutions
407	705		adopted by the board of directors pursuant to authority expressly
408	706		vested in it by the provisions of the certificate of incorporation
409	707		or any amendment thereto, a certificate of designations setting
410	708		forth a copy of the resolution or resolutions and the number of
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411	736		shares of stock of the class or series to which the resolution or
412	737		resolutions apply shall be executed, acknowledged , and filed, and
413	738		shall become effective , in accordance with the provisions of Section
414	739		1007 of this title. Unless otherwise provided in any resolution or
415	740		resolutions, the number of shares of stock of any series to which
416	741		the resolution or resolutions apply may be increased, but not above
417	742		the total number of authorized shares of the class, or decreased,
418	743		but not below the number of shares thereof then outstanding, by a
419	744		certificate likewise executed, acknowledged , and filed setting forth
420	745		a statement that a specified increase or decrease therein had been
421	746		authorized and directed by a resolution or resolutions likewise
422	747		adopted by the board of directors. In case the number of the shares
423	748		shall be decreased, the number of shares so specified in the
424	749		certificate shall resume the status which they had prior to the
425	750		adoption of the first resolution or resolutions. Unless otherwise
426	751		provided in the certificate of incorporation, if no shares of stock
427	752		have been issued of a class or series of stock established by a
428	753		resolution of the board of d irectors, the voting powers,
429	754		designations, preferences , and relative, participating, optional , or
430	755		other rights, if any, or the qualifications, limitations , or
431	756		restrictions thereof , may be amended by a resolution or resolutions
432	757		adopted by the board of direc tors. A certificate which states that
433	758		no shares of the class or series have been issued, sets forth a copy
434	759		of the resolution or resolutions, and, if the designation of the
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435	787		class or series is being changed, indicates the original designation
436	788		and the new designation, shall be executed, acknowledged , and filed,
437	789		and shall become effective, in accordance with the provisions of
438	790		Section 1007 of this title. When no shares of any class or series
439	791		are outstanding, either because none were issued or because no
440	792		issued shares of any class or series remain outstanding, a
441	793		certificate setting forth a resolution or resolutions adopted by the
442		-
443		-	ENR. S. B. NO. 228 Page 11
444	794		board of directors that none of the authorized shares of the class
445	795		or series are outstanding, and that none will be issued subject to
446	796		the certificate of designations previously filed with respect to the
447	797		class or series, may be executed, acknowledged , and filed in
448	798		accordance with the provisions of Section 1007 of this title and,
449	799		when the certificate becomes effective, it shall have the ef fect of
450	800		eliminating from the certificate of incorporation all matters set
451	801		forth in the certificate of designations with respect to the class
452	802		or series of stock.
453		-
454	803		2. When any certificate filed pursuant to the provisions of
455	804		this subsection becomes effective, it shall have the effect of
456	805		amending the certificate of incorporation; except that neither the
457	806		filing of the certificate nor the filing of a restated certificate
458	807		of incorporation pursuant to Section 1080 of this title shall
459	808		prohibit the board of directors from subsequently adopting
460	809		resolutions as authorized by this subsection.
461	810
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462	837		SECTION 4. AMENDATORY 18 O.S. 2011, Section 1033, as
463	838		amended by Section 7, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
464	839		Section 1033), is amended to read a s follows:
465		-
466	840		Section 1033.
467		-
468	841		ISSUANCE OF STOCK, LAWFUL CONSIDERATION - FULLY PAID STOCK
469		-
470	842		A. The consideration, as determined pursuant to the provisions
471	843		of subsections A and B of Section 1034 of this title, for
472	844		subscriptions to, or the purchase of, the capital stock to be issued
473	845		by a corporation shall be paid in such form and in such manner as
474	846		the board of directors shall determine. The board of directors may
475	847		authorize capital stock to be issued for consideration consisting of
476	848		cash, any tangible or intangible p roperty or any benefit to the
477	849		corporation, or any combination thereof, except for services to be
478	850		performed. The resolution authorizing the issuance of capital stock
479	851		may provide that any stock to be issued pursuant to such resolution
480	852		may be issued in one o r more transactions in such numbers and at
481	853		such times as are set forth in or determined by or in the manner set
482	854		forth in the resolution, which may include a determination or action
483	855		by any person or body including the corporation , provided the
484	856		resolution fixes a maximum number of shares that may be issued
485	857		pursuant to such resolution, a time period during which such shares
486		-
487		-	ENR. S. B. NO. 228 Page 12
488	858		may be issued and a minimum amount of consideration for which such
489	859		shares may be issued. The board of directors may determine the
490	860		amount of such consideration for which shares may be issued by
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491	888		setting a minimum amount of consideration or by approving a formula
492	889		by which the amount of consideration is determined. The formula may
493	890		include or be made dependent upon facts ascertainable outside t he
494	891		formula, provided the manner in which such facts shall operate upon
495	892		the formula is clearly and expressly set forth in the formula or in
496	893		the resolution approving the formula. In the absence of actual
497	894		fraud in the transaction, the judgment of the directo rs as to the
498	895		value of such consideration shall be conclusive. The capital stock
499	896		so issued shall be deemed to be fully paid and nonassessable stock
500	897		upon receipt by the corporation of the authorized consideration.
501		-
502	898		B. The provisions of subsection A of this section shall not be
503	899		construed to prevent the board of directors from issuing partly paid
504	900		shares in accordance with the provisions of Section 1037 of this
505	901		title.
506		-
507	902		SECTION 5. AMENDATORY 18 O.S. 2011, Section 1038, is
508	903		amended to read as follows:
509		-
510	904		Section 1038.
511		-
512	905		RIGHTS AND OPTIONS RESPECTING STOCK
513		-
514	906		A. Subject to any provisions in the certificate of
515	907		incorporation, every corporation may create and issue, whether or
516	908		not in connection with the issue and sale of any shares of stock or
517	909		other securities of the corporation, rights or options entitling the
518	910		holders thereof to acquire from the corporation any shares of its
519	911		capital stock of any class or classes, such rights or options to be
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520	939		evidenced by or in such instrument or instruments as shall b e
521	940		approved by the board of directors.
522		-
523	941		B. The terms upon which, including the time or times, which may
524	942		be limited or unlimited in duration, at or within which, and the
525	943		consideration, including any formula by which such consideration may
526	944		be determined, for which any such shares may be acquired from the
527	945		corporation upon the exercise of any such right or option, shall be
528	946		such as shall be stated in the certificate of incorporation, or in a
529	947		resolution adopted by the board of directors providing for the
530		-
531		-	ENR. S. B. NO. 228 Page 13
532	948		creation and issue of such rights or options, and, in every case,
533	949		shall be set forth or incorporated by reference in the instrument or
534	950		instruments evidencing such rights or options. A formula by which
535	951		such consideration may be determined may include or be made
536	952		dependent upon facts ascertainable outside the formula , provided the
537	953		manner in which such facts shall operate upon the formula is clearly
538	954		and expressly set forth in the formula or in the resolution
539	955		approving the formula. In the absence of actual fraud in the
540	956		transaction, the judgment of the directors as to the consideration
541	957		for the issuance of such rights or options and the sufficiency
542	958		thereof shall be conclusive.
543		-
544	959		C. The board of directors may, by a resolution adopted by the
545	960		board, authorize one or more offi cers of the corporation to do one
546	961		or both of the following:
547	962
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548	989		1. Designate officers and employees of the corporation or of
549	990		any of its subsidiaries to be recipients of such rights or options
550	991		created by the corporation; and
551		-
552	992		2. Determine the number of such ri ghts or options to be
553	993		received by such officers and employees;
554		-
555	994		provided, however, that the resolution so authorizing such
556	995		officer or officers shall specify the total number of rights or
557	996		options such officer or officers may so award. The board of
558	997		directors may not authorize an officer to designate himself or
559	998		herself as a recipient of any such rights or options.
560		-
561	999		D. In case the shares of stock of the corporation to be issued
562	1000		upon the exercise of such rights or options shall be shares having a
563	1001		par value, the consideration so to be received therefor shall have a
564	1002		value not less than the par value thereof. In case the shares of
565	1003		stock so to be issued shall be shares of stock without par value,
566	1004		the consideration therefor shall be determined in the manner
567	1005		provided for in Section 1034 of this title.
568		-
569	1006		SECTION 6. AMENDATORY Section 9, Chapter 323, O.S.L.
570	1007		2017 (18 O.S. Supp. 2020, Section 1055.1), is amended to read as
571	1008		follows:
572		-
573	1009		Section 1055.1.
574		-
575		-	ENR. S. B. NO. 228 Page 14
576		-
577	1010		RATIFICATION OF DEFECTIVE CORPORATE ACTS AND STOCK
578		-
579	1011		A. Subject to subsection F of this section, no defective
580	1012		corporate act or putative stock shall be void or voidable solely as
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581	1040		a result of a failure of authorization if ratified as provided in
582	1041		this section or validated by the District Court in a proceeding
583	1042		brought under Section 10 of this act 1055.2 of this title .
584		-
585	1043		B. 1. In order to ratify one or more defective corporate acts
586	1044		pursuant to this section, other than the ratification of an election
587	1045		of the initial board of directors pursuant to paragraph 2 of this
588	1046		subsection, the board of directors of the corporation shall adopt
589	1047		resolutions stating:
590		-
591	1048		a. the defective corporate act or acts to be ratified,
592		-
593	1049		b. the date of each defective corporate act or acts,
594		-
595	1050		c. if such defective corporate act or acts involved the
596	1051		issuance of shares of putative stock, the number and
597	1052		type of shares of putative stock issued and the date
598	1053		or dates upon which such putative shares were
599	1054		purported to have been issued,
600		-
601	1055		d. the nature of the failure of authorization in respect
602	1056		of each defective co rporate act to be ratified, and
603		-
604	1057		e. that the board of directors approves the ratification
605	1058		of the defective corporate act or acts.
606		-
607	1059		The resolutions may also provide that, at any time before the
608	1060		validation effective time for the defective act or acts,
609	1061		notwithstanding approval of the ratification by shareholders, the
610	1062		board of directors may abandon the ratification without further
611	1063		action of the shareholders. The quorum and voting requirements
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	1090	+
612	1091		applicable to the ratification by the board of directors shall be
613	1092		the quorum and voting requirements applicable at the time to the
614	1093		type of defective corporate act proposed to be ratified when the
615	1094		board adopts the resolutions ratifying the defective corporate act ;
616	1095		provided, that if the certificate of incorporation or bylaws o f the
617	1096		corporation, any plan or agreement to which the corporation was a
618		-
619		-	ENR. S. B. NO. 228 Page 15
620	1097		party or any provision of Title 18 of the Oklahoma Statutes this
621	1098		title, in each case as in effect as of the time of the defective
622	1099		corporate act, would have required a larger number or portion of
623	1100		directors or of specified directors for a quorum to be present or to
624	1101		approve the defective corporate act, such larger number or portion
625	1102		of such directors or such specified directors shall be required for
626	1103		a quorum to be present or to adopt the ra tifying resolutions, as
627	1104		applicable, except that the presence or approval of any director
628	1105		elected, appointed or nominated by holders of any class or series of
629	1106		which no shares are then outstanding, or by any person that is no
630	1107		longer a shareholder, shall not be required.
631		-
632	1108		2. To ratify a defective corporate act in respect of the
633	1109		election of the initial board of directors of the corporation, a
634	1110		majority of the persons who, at the time the resolutions required by
635	1111		this paragraph are adopted, are exercising the powe rs of directors
636	1112		under claim and color of an election or appointment as such may
637	1113		adopt resolutions stating:
638	1114
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	1140	+
639	1141		a. the name of the person or persons who first took
640	1142		action in the name of the corporation as the initial
641	1143		board of directors of the corporation,
642		-
643	1144		b. the earlier of the date on which such persons first
644	1145		took such action or were purported to have been
645	1146		elected as the initial board of directors, and
646		-
647	1147		c. that the ratification of the election of such person
648	1148		or persons as the initial board of directors is
649	1149		approved.
650		-
651	1150		C. Each defective corporate act ratified pursuant to paragraph
652	1151		1 of subsection B of this section shall be submitted to shareholders
653	1152		for approval as provided in subsection D of this section, unless :
654		-
655	1153		(1) no
656		-
657	1154		1. a. No other provision of Title 18 of the Oklahoma
658	1155		Statutes this title, and no provision of the
659	1156		certificate of incorporation or bylaws of the
660	1157		corporation, or of any plan or agreement to which the
661	1158		corporation is a party, would have required
662		-
663		-	ENR. S. B. NO. 228 Page 16
664	1159		shareholder approval of the defective corporate act to
665	1160		be ratified, either at the time of the defective
666	1161		corporate act or at the time t he board of directors
667	1162		adopts the resolutions ratifying the defective
668	1163		corporate act pursuant to paragraph 1 of subsection B
669	1164		of this section, and (2) the.
670	1165
	1166	+	SB228 HFLR Page 23
	1167	+	BOLD FACE denotes Committee Amendments. 1
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	1189	+	23
	1190	+	24
	1191	+
671	1192		b. The defective corporate ac t did not result from a
672	1193		failure to comply with Section 1090.3 of Title 18 of
673	1194		the Oklahoma Statutes this title; or
674		-
675	1195		2. As of the record date for determining the shareholders
676	1196		entitle to vote on the ratification of the defective corporate act,
677	1197		there are no shares of valid stock outstanding and entitled to vote
678	1198		thereon, regardless of whether there then exist any shares of
679	1199		putative stock.
680		-
681	1200		D. If ratification of a defective corporate act is required to
682	1201		be submitted to shareholders for approval pursuant to subsection C
683	1202		of this section, due notice of the time, place, if any, and purpose
684	1203		of the meeting shall be given at least twenty (20) days before the
685	1204		date of the meeting to each holder of valid stock and putative
686	1205		stock, whether voting or nonvoting, at the address o f such holder as
687	1206		it appears or most recently appeared, as appropriate, on the records
688	1207		of the corporation. The notice shall also be given to the holders
689	1208		of record of valid stock and putative stock, whether voting or
690	1209		nonvoting, as of the time of the defecti ve corporate act, other than
691	1210		or, in the case of any defective corporate act that involved the
692	1211		establishment of a record date for notice of or voting at any
693	1212		meeting of shareholders, for action by written consent of
694	1213		shareholders in lieu of a meeting, or for any other purpose, as of
695	1214		the record date for notice of or voting at such meeting, the record
696	1215		date for action by written consent, or the record date for such
	1216	+
	1217	+	SB228 HFLR Page 24
	1218	+	BOLD FACE denotes Committee Amendments. 1
	1219	+	2
	1220	+	3
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	1224	+	7
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	1234	+	17
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	1237	+	20
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	1239	+	22
	1240	+	23
	1241	+	24
	1242	+
697	1243		other action, as the case may be, except that no notice need b e
698	1244		given to holders whose identities o r addresses cannot be determined
699	1245		from the records of the corporation. The notice shall contain a
700	1246		copy of the resolutions adopted by the board of directors pursuant
701	1247		to paragraph 1 of subsection B of this section or the information
702	1248		required by paragraphs a through e of paragraph 1 of subsection B of
703	1249		this section and a statement that any claim that the defective
704	1250		corporate act or putative stock ratified hereunder is void or
705	1251		voidable due to the failure of authorization, or that the District
706		-
707		-	ENR. S. B. NO. 228 Page 17
708	1252		Court should declare in its discretion that a ratification in
709	1253		accordance with this section not be effective or be effective only
710	1254		on certain conditions must be brought within one hundred twenty
711	1255		(120) days from the validation effective time. At such meeting the
712	1256		quorum and voting requirements applicable to the ratification of
713	1257		such defective corporate act shall be the quorum and voting
714	1258		requirements applicable to the type of defective corporate act
715	1259		proposed to be ratified at the time of the approval of the
716	1260		ratification, except that:
717		-
718	1261		1. If the certificate of incorporation or bylaws of the
719	1262		corporation, any plan or agreement to which the corporation was a
720	1263		party or any provision of this title in effect as of the time of the
721	1264		defective corporate act would have required a larger number o r
722	1265		portion of stock or of any class or series thereof or of specified
723	1266		shareholders for a quorum to be present or to approve the defective
	1267	+
	1268	+	SB228 HFLR Page 25
	1269	+	BOLD FACE denotes Committee Amendments. 1
	1270	+	2
	1271	+	3
	1272	+	4
	1273	+	5
	1274	+	6
	1275	+	7
	1276	+	8
	1277	+	9
	1278	+	10
	1279	+	11
	1280	+	12
	1281	+	13
	1282	+	14
	1283	+	15
	1284	+	16
	1285	+	17
	1286	+	18
	1287	+	19
	1288	+	20
	1289	+	21
	1290	+	22
	1291	+	23
	1292	+	24
	1293	+
724	1294		corporate act, the presence or approval of such larger number or
725	1295		portion of stock or of such class or series thereof or of such
726	1296		specified shareholders shall be required for a quorum to be present
727	1297		or to approve the ratification of the defective corporate act , as
728	1298		applicable, except that the presence or approval of shares of any
729	1299		class or series of which no shares are then out standing, or of any
730	1300		person that is no longer a shareholder, shall not be required;
731		-
732	1301		2. The approval by shareholders of the ratification of the
733	1302		election of a director shall require the affirmative vote of the
734	1303		majority of shares present at the meeting and en titled to vote on
735	1304		the election of such director, except that if the certificate of
736	1305		incorporation or bylaws of the corporation then in effect or in
737	1306		effect at the time of the defective election require or required a
738	1307		larger number or portion of stock or of any class or series thereof
739	1308		or of specified shareholders to elect such director, the affirmative
740	1309		vote of such larger number or portion of stock or of any class or
741	1310		series thereof or of specified shareholders shall be required to
742	1311		ratify the election of such di rector, except that the presence or
743	1312		approval of shares of any class or series of which no shares are
744	1313		then outstanding, or of any person that is no longer a shareholder,
745	1314		shall not be required ; and
746		-
747	1315		3. In the event of a failure of authorization resulting fro m
748	1316		failure to comply with the provisions of Section 1090.3 of Title 18
749	1317		of the Oklahoma Statutes this title, the ratification of the
750	1318
751		-	ENR. S. B. NO. 228 Page 18
	1319	+	SB228 HFLR Page 26
	1320	+	BOLD FACE denotes Committee Amendments. 1
	1321	+	2
	1322	+	3
	1323	+	4
	1324	+	5
	1325	+	6
	1326	+	7
	1327	+	8
	1328	+	9
	1329	+	10
	1330	+	11
	1331	+	12
	1332	+	13
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	1334	+	15
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	1337	+	18
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	1339	+	20
	1340	+	21
	1341	+	22
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	1343	+	24
	1344	+
752	1345		defective corporate act shall require the vote set forth in
753	1346		paragraph 3 of subsection A of Section 1090.3 of Title 18 of the
754	1347		Oklahoma Statutes this title, regardless of whether such vote would
755	1348		have otherwise been required.
756		-
757	1349		Shares of putative stock on the record date for determining
758	1350		shareholders entitled to vote on any matter submitted to
759	1351		shareholders pursuant to subsection C of this section, and without
760	1352		giving effect to any ratification that becomes effective after such
761	1353		record date, shall neither be entitled to vote nor counted for
762	1354		quorum purposes in any vote to ratify any defective corporate act.
763		-
764	1355		E. If a defective corporate act ratified pursuant to this
765	1356		section would have required under any other section of Title 18 of
766	1357		the Oklahoma Statutes this title the filing of a certificate in
767	1358		accordance with Section 1007 of Title 18 of the Oklahoma Statutes
768	1359		this title, then, whether or not a certificate was previously filed
769	1360		in respect of such defective corporate act and in lieu of filing the
770	1361		certificate otherwise required by Title 18 of the Oklahoma Statutes
771	1362		this title, the corporation shall file a certificate of validation
772	1363		with respect to such defective corporate act in accordance with
773	1364		Section 1007 of Title 18 of the Oklahoma Statutes this title. A
774	1365		separate certificate of validation shall be required for each
775	1366		defective corporate act requiring the filing of a certificate of
776	1367		validation under this section, except that (i) two or more defective
777	1368		corporate acts may be included in a single certificate of validation
	1369	+
	1370	+	SB228 HFLR Page 27
	1371	+	BOLD FACE denotes Committee Amendments. 1
	1372	+	2
	1373	+	3
	1374	+	4
	1375	+	5
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	1377	+	7
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	1385	+	15
	1386	+	16
	1387	+	17
	1388	+	18
	1389	+	19
	1390	+	20
	1391	+	21
	1392	+	22
	1393	+	23
	1394	+	24
	1395	+
778	1396		if the corporation filed, or to comply with Title 18 of the Oklahoma
779	1397		Statutes this title would have filed, a single certificate under
780	1398		another provision of Title 18 of the Oklahoma Statutes this title to
781	1399		effect such acts, and (ii) two or more overissues of shares of any
782	1400		class, classes or series of stock may be included in a single
783	1401		certificate of validation, provided that the increase in t he number
784	1402		of authorized shares of each such class or series set forth in the
785	1403		certificate of validation shall be effective as of the date of the
786	1404		first such overissue. The certificate of validation shall set
787	1405		forth:
788		-
789	1406		1. Each defective corporate act that is t he subject of the
790	1407		certificate of validation , including, in the case of any defective
791	1408		corporate act involving the issuance of shares of putative stock,
792	1409		the number and type of shares of putative stock issued and the date
793	1410		or dates upon which such putative sha res were purported to have been
794		-
795		-	ENR. S. B. NO. 228 Page 19
796	1411		issued, the date of such defective corporate act , and the nature of
797	1412		the failure of authorization in respect of such defective corporate
798	1413		act;
799		-
800	1414		2. A statement that such defective corporate act was ratified
801	1415		in accordance with t his section, including the date on which the
802	1416		board of directors ratified such defective corporate act and the
803	1417		date, if any, on which the shareholders approved the ratification of
804	1418		such defective corporate act; and
805		-
806	1419		3. The information required by one of the following paragraphs:
	1420	+
	1421	+	SB228 HFLR Page 28
	1422	+	BOLD FACE denotes Committee Amendments. 1
	1423	+	2
	1424	+	3
	1425	+	4
	1426	+	5
	1427	+	6
	1428	+	7
	1429	+	8
	1430	+	9
	1431	+	10
	1432	+	11
	1433	+	12
	1434	+	13
	1435	+	14
	1436	+	15
	1437	+	16
	1438	+	17
	1439	+	18
	1440	+	19
	1441	+	20
	1442	+	21
	1443	+	22
	1444	+	23
	1445	+	24
807	1446
808	1447		a. if a certificate was previously filed under Section
809	1448		1007 of Title 18 of the Oklahoma Statutes this title
810	1449		in respect of such defective corporate act and no
811	1450		changes to such certificate are required to give
812	1451		effect to such defective co rporate act in accordance
813	1452		with this section, the certificate of validation shall
814	1453		set forth (1) the name, title and filing date of the
815	1454		certificate previously filed and of any certificate of
816	1455		correction thereto and (2) a statement that a copy of
817	1456		the certificate previously filed, together with any
818	1457		certificate of correction thereto, is attached as an
819	1458		exhibit to the certificate of validation ,
820		-
821	1459		b. if a certificate was previously filed under Section
822	1460		1007 of Title 18 of the Oklahoma Statutes this title
823	1461		in respect of the defective corporate act and such
824	1462		certificate requires any change to give effect to the
825	1463		defective corporate act in accordance with this
826	1464		section, including a change to the date and time of
827	1465		the effectiveness of such certificate, the certificate
828	1466		of validation shall set forth (1) the name, title and
829	1467		filing date of the certificate so previously filed and
830	1468		of any certificate of correction thereto, (2) a
831	1469		statement that a certificate containing all of the
832	1470		information required to be included under the
	1471	+
	1472	+	SB228 HFLR Page 29
	1473	+	BOLD FACE denotes Committee Amendments. 1
	1474	+	2
	1475	+	3
	1476	+	4
	1477	+	5
	1478	+	6
	1479	+	7
	1480	+	8
	1481	+	9
	1482	+	10
	1483	+	11
	1484	+	12
	1485	+	13
	1486	+	14
	1487	+	15
	1488	+	16
	1489	+	17
	1490	+	18
	1491	+	19
	1492	+	20
	1493	+	21
	1494	+	22
	1495	+	23
	1496	+	24
	1497	+
833	1498		applicable section or sections of Title 18 of the
834	1499		Oklahoma Statutes this title to give effect to the
835	1500		defective corporate act is attached as an exhibit to
836	1501		the certificate of validation, and (3) the date and
837		-
838		-	ENR. S. B. NO. 228 Page 20
839	1502		time that such certificate shall be deemed to have
840	1503		become effective pursuant to this section, or
841		-
842	1504		c. if a certificate was not previously filed under
843	1505		Section 1007 of Title 18 of the Oklahoma Statutes this
844	1506		title in respect of the defective corporate act and
845	1507		the defective corporate act ratified pursuant to this
846	1508		section would have required under any other section of
847	1509		Title 18 of the Oklahoma Statutes this title the
848	1510		filing of a certificate in accordance with Section
849	1511		1007 of Title 18 of the Oklahoma Statutes this title,
850	1512		the certificate of validation shall set forth (1) a
851	1513		statement that a certificate containing all of the
852	1514		information required to be included under the
853	1515		applicable section or sections of Title 18 of the
854	1516		Oklahoma Statutes this title to give effect to the
855	1517		defective corporate act is attached as an exhibit to
856	1518		the certificate of validation, and (2) the date and
857	1519		time that such certificate shall be deemed to have
858	1520		become effective pursuant to this section.
859	1521
	1522	+	SB228 HFLR Page 30
	1523	+	BOLD FACE denotes Committee Amendments. 1
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	1547	+
860	1548		A certificate attached to a certificate of validation pursuant
861	1549		to subparagraph b or c of paragraph 3 of this subsection need not be
862	1550		separately executed and acknowledged and need not include any
863	1551		statement required by any other section of Title 18 of the Oklahoma
864	1552		Statutes this title that such instrument has been approved and
865	1553		adopted in accordance with the provisions of such other section.
866		-
867	1554		F. From and after the validation effective time, unless
868	1555		otherwise determined in an action brought pursuant to Section 10 of
869	1556		this act 1055.2 of this title :
870		-
871	1557		1. Subject to the last sentence of subsection D of this
872	1558		section, each defective corporate act ratified in accordance with
873	1559		this section shall no longer be deemed void or voidable as a result
874	1560		of the failure of authorization described in the adopted resolutions
875	1561		and such effect shall be retroactive to the time of the defective
876	1562		corporate act; and
877		-
878	1563		2. Subject to the last sentence of subsection D of this
879	1564		section, each share or fraction of a share of putative stock issued
880	1565		or purportedly issued pursuant to any such defective corporate act
881		-
882		-	ENR. S. B. NO. 228 Page 21
883	1566		shall no longer be deemed void or voidable and shall be deem ed to be
884	1567		an identical share or fraction of a share of outstanding stock as of
885	1568		the time it was purportedly issued.
886		-
887	1569		G. In respect of each defective corporate act ratified by the
888	1570		board of directors pursuant to subsection B of this section, prompt
889	1571		notice of the ratification shall be given to all holders of valid
	1572	+
	1573	+	SB228 HFLR Page 31
	1574	+	BOLD FACE denotes Committee Amendments. 1
	1575	+	2
	1576	+	3
	1577	+	4
	1578	+	5
	1579	+	6
	1580	+	7
	1581	+	8
	1582	+	9
	1583	+	10
	1584	+	11
	1585	+	12
	1586	+	13
	1587	+	14
	1588	+	15
	1589	+	16
	1590	+	17
	1591	+	18
	1592	+	19
	1593	+	20
	1594	+	21
	1595	+	22
	1596	+	23
	1597	+	24
	1598	+
890	1599		stock and putative stock, whether voting or nonvoting, as of the
891	1600		date the board of directors adopts the resolutions approving such
892	1601		defective corporate act, or as of a date within sixty (60) days
893	1602		after the date of adoption, as established by the board of
894	1603		directors, at the address of such holder as it appears or most
895	1604		recently appeared, as appropriate, on the records of the
896	1605		corporation. The notice shall also be given to the holders of
897	1606		record of valid stoc k and putative stock, whether voting or
898	1607		nonvoting, as of the time of the defective corporate act, other than
899	1608		holders whose identities or addresses cannot be determined from the
900	1609		records of the corporation. The notice shall contain a copy of the
901	1610		resolutions adopted pursuant to subsection B of this section or the
902	1611		information specified in subparagraphs a through e of paragraph 1 of
903	1612		subsection B of this section or subparagraphs a through c of
904	1613		paragraph 2 of subsection B of this section, as applicable, and a
905	1614		statement that any claim that the defective corporate act or
906	1615		putative stock ratified hereunder is void or voidable due to the
907	1616		failure of authorization, or that the district court should declare
908	1617		in its discretion that a ratification in accordance with this
909	1618		section not be effective or be effective only on certain conditions
910	1619		must be brought within one hundred twenty (120) days from the later
911	1620		of the validation effective time or the time at which the notice
912	1621		required by this subsection is given . Notwithstanding the
913	1622		foregoing, no such notice shall be required if notice of the
	1623	+
	1624	+	SB228 HFLR Page 32
	1625	+	BOLD FACE denotes Committee Amendments. 1
	1626	+	2
	1627	+	3
	1628	+	4
	1629	+	5
	1630	+	6
	1631	+	7
	1632	+	8
	1633	+	9
	1634	+	10
	1635	+	11
	1636	+	12
	1637	+	13
	1638	+	14
	1639	+	15
	1640	+	16
	1641	+	17
	1642	+	18
	1643	+	19
	1644	+	20
	1645	+	21
	1646	+	22
	1647	+	23
	1648	+	24
	1649	+
914	1650		ratification of the defective corporate act is to be given in
915	1651		accordance with subsection D of this section , and in the case of a
916	1652		corporation that has a class of stock listed on a national
917	1653		securities exchange, the notice required by this subsection and
918	1654		subsection D of this section may be deemed given if disclosed in a
919	1655		document publicly filed by the corporation with the Securities and
920	1656		Exchange Commission pursuant to Sections 13, 14 or 15(d) of the
921	1657		Securities Exchange Act of 1934, as amended, and the rules and
922	1658		regulations promulgated thereunder, or the corresponding provisions
923	1659		of any subsequent United States federal securities laws, rules or
924	1660		regulations. If any defective corporate act has been appro ved by
925		-
926		-	ENR. S. B. NO. 228 Page 22
927	1661		shareholders acting pursuant to Section 1073 of Title 18 of the
928	1662		Oklahoma Statutes this title, the notice required by this subsection
929	1663		may be included in any notice required to be given pursuant to
930	1664		subsection F of Section 1073 of Title 18 of the Oklah oma Statutes
931	1665		this title and, if so given, shall be sent to the shareholders
932	1666		entitled to notice under subsection F of Section 1073 of Title 18 of
933	1667		the Oklahoma Statutes this title and to all holders of valid and
934	1668		putative stock to whom notice would be require d under this
935	1669		subsection if the defective corporate act had been approved at a
936	1670		meeting other than any shareholder who approved the action by
937	1671		consent in lieu of a meeting pursuant to Section 1073 of Title 18 of
938	1672		the Oklahoma Statutes this title or any holder of putative stock who
939	1673		otherwise consented thereto in writing . Solely for purposes of
	1674	+
	1675	+	SB228 HFLR Page 33
	1676	+	BOLD FACE denotes Committee Amendments. 1
	1677	+	2
	1678	+	3
	1679	+	4
	1680	+	5
	1681	+	6
	1682	+	7
	1683	+	8
	1684	+	9
	1685	+	10
	1686	+	11
	1687	+	12
	1688	+	13
	1689	+	14
	1690	+	15
	1691	+	16
	1692	+	17
	1693	+	18
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	1695	+	20
	1696	+	21
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	1700	+
940	1701		subsection D of this section and this subsection, notice to holders
941	1702		of putative stock, and notice to holders of valid stock and putative
942	1703		stock as of the time of the defec tive corporate act, shall be
943	1704		treated as notice to holders of valid stock for purposes of Sections
944	1705		1067, 1073, 1074, 1075, 1075.2 and 1075.3 of Title 18 of the
945	1706		Oklahoma Statutes this title.
946		-
947	1707		H. As used in this section and in Section 10 of this act 1055.2
948	1708		of this title only, the term:
949		-
950	1709		1. “Defective corporate act ” means an overissue, an election or
951	1710		appointment of directors that is void or voidable due to a failure
952	1711		of authorization, or any act or transaction purportedly taken by or
953	1712		on behalf of the corporation that is, and at the time such act or
954	1713		transaction was purportedly taken would have been, within the power
955	1714		of a corporation under subchapter II of Title 18 of the Oklahoma
956	1715		Statutes this title, without regard to the failure of authorization
957	1716		identified in subparagraph d of paragraph 1 of subsection B of this
958	1717		section, but is void or voidable due to a failure of authorization;
959		-
960	1718		2. “Failure of authorization ” means (a):
961		-
962	1719		a. the failure to authorize or effect an act or
963	1720		transaction in compliance with :
964		-
965	1721		(1) the provisions of Title 18 of the Oklahoma
966	1722		Statutes this title,
967		-
968		-
969		-	ENR. S. B. NO. 228 Page 23
970	1723		(2) the certificate of incorporation or bylaws of the
971	1724		corporation, or
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	1727	+	BOLD FACE denotes Committee Amendments. 1
	1728	+	2
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972	1751
973	1752		(3) any plan or agreement to which the corporation is
974	1753		a party or the disclosure set forth in any proxy
975	1754		or consent solicitation statem ent, if and to the
976	1755		extent such failure would render such act or
977	1756		transaction void or voidable, or (b)
978		-
979	1757		b. the failure of the board of directors or any officer
980	1758		of the corporation to authorize or approve any act or
981	1759		transaction taken by or on behalf of the corp oration
982	1760		that would have required for its due authorization the
983	1761		approval of the board of directors or such officer ;
984		-
985	1762		3. “Overissue” means the purported issuance of (a) shares of
986	1763		capital stock of a class or series in excess of the number of shares
987	1764		of such class or series the corporation has the power to issue under
988	1765		Section 1042 of Title 18 of the Oklahoma Statutes this title at the
989	1766		time of such issuance, or (b) shares of any class or series of
990	1767		capital stock that is not then authorized for issuance by the
991	1768		certificate of incorporation of the corporation;
992		-
993	1769		4. “Putative stock” means the shares of any class or series of
994	1770		capital stock of the corporation, including shares issued upon
995	1771		exercise of options, rights, warrants or other securities
996	1772		convertible into shares of capital stock of the corporation, or
997	1773		interests with respect thereto that were created or issued pursuant
998	1774		to a defective corporate act, that: (a) but for any failure of
	1775	+
	1776	+	SB228 HFLR Page 35
	1777	+	BOLD FACE denotes Committee Amendments. 1
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	1800	+	24
	1801	+
999	1802		authorization, would constitute valid stock, or (b) cannot be
1000	1803		determined by the board of directors to be valid stock;
1001		-
1002	1804		5. “Time of the defective corporate act ” means the date and
1003	1805		time the defective corporate act was purported to have been taken;
1004		-
1005	1806		6. “Valid stock” means the shares of any class or series of
1006	1807		capital stock of the corporation th at have been duly authorized and
1007	1808		validly issued in accordance with Title 18 of the Oklahoma Statutes
1008	1809		this title; and
1009		-
1010	1810		7. “Validation effective time ” with respect to any defective
1011	1811		corporate act ratified pursuant to this section means the latest of
1012		-
1013		-	ENR. S. B. NO. 228 Page 24
1014	1812		(a) the time at which the defective act submitted to the
1015	1813		shareholders for approval pursuant to subsection C of this section
1016	1814		is approved by such shareholders, or if no such vote of shareholders
1017	1815		is required to approve the ratification, the time at which the board
1018	1816		of directors adopts the resolutions required by paragraphs 1 or 2 of
1019	1817		subsection B of this section, (b) w here no certificate of validation
1020	1818		is required to be filed pursuant to subsection E of this section,
1021	1819		the time, if any, specified by the board of directors i n the
1022	1820		resolutions adopted pursuant to paragraphs 1 or 2 of subsection B of
1023	1821		this section, which time shall not precede the time at which such
1024	1822		resolutions are adopted; and (c) the time at which any certificate
1025	1823		of validation filed pursuant to subsection E of this section shall
1026	1824		become effective in accordance with Section 1007 of Title 18 of the
1027	1825		Oklahoma Statutes this title.
1028	1826
	1827	+	SB228 HFLR Page 36
	1828	+	BOLD FACE denotes Committee Amendments. 1
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	1840	+	13
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	1852	+
1029	1853		In the absence of actual fraud in the transaction, the judgment
1030	1854		of the board of directors that shares of stock are valid stock or
1031	1855		putative stock shall be conclusive, unless otherwise determined by
1032	1856		the District Court in a proceeding brought pursuant to Section 10 of
1033	1857		this act 1055.2 of this title .
1034		-
1035	1858		I. Ratification under this section or validation under Section
1036	1859		10 of this act 1055.2 of this title shall not be deemed to be the
1037	1860		exclusive means of ratifying or validating any act or transaction
1038	1861		taken by or on behalf of the corporation, including any defective
1039	1862		corporate act, or any issuance of stock, including any putative
1040	1863		stock, or of adopting or end orsing any act or transaction taken by
1041	1864		or in the name of the corporation prior to the commencement of its
1042	1865		existence, and the absence or failure of ratification in accordance
1043	1866		with either this section or validation under Section 10 of this act
1044	1867		1055.2 of this title shall not, of itself, affect the validity or
1045	1868		effectiveness of any act or transaction or the issuance of any stock
1046	1869		properly ratified under common law or otherwise, nor shall it create
1047	1870		a presumption that any such act or transaction is or was a defecti ve
1048	1871		corporate act or that such stock is void or voidable.
1049		-
1050	1872		SECTION 7. AMENDATORY 18 O.S. 2011, Section 1064, as
1051	1873		amended by Section 14, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
1052	1874		Section 1064), is amended to read as follows:
1053		-
1054	1875		Section 1064.
1055	1876
1056		-
1057		-	ENR. S. B. NO. 228 Page 25
	1877	+	SB228 HFLR Page 37
	1878	+	BOLD FACE denotes Committee Amendments. 1
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	1899	+	22
	1900	+	23
	1901	+	24
	1902	+
1058	1903		LIST OF SHAREHOLDERS ENTITLED TO VOTE; PENALTY FOR REFUSAL TO
1059	1904		PRODUCE STOCK LEDGER
1060		-
1061	1905		A. The officer who has charge of the stock ledger of a
1062	1906		corporation shall prepare and make, at least ten (10) days before
1063	1907		every meeting of shareholders, a complete list of the shareholders
1064	1908		entitled to vote at the meeting; provided, however, if the record
1065	1909		date for determining the shareholders entitled to vote is less than
1066	1910		ten (10) days before the meeting date, the list shall reflect the
1067	1911		shareholders entitled to vote a s of the tenth day before the meeting
1068	1912		date, arranged in alphabetical order, and showing the address of
1069	1913		each shareholder and the number of shares registered in the name of
1070	1914		each shareholder. Nothing contained in this section shall require
1071	1915		the corporation to include electronic mail addresses or other
1072	1916		electronic contact information on the list. The list shall be open
1073	1917		to the examination of any shareholder, for any purpose germane to
1074	1918		the meeting for a period of at least ten (10) days prior to the
1075	1919		meeting:
1076		-
1077	1920		1. On a reasonably accessible electronic network; provided ,
1078	1921		that the information required to gain access to the list is provided
1079	1922		with the notice of the meeting; or
1080		-
1081	1923		2. During ordinary business hours, at the principal place of
1082	1924		business of the corporation. In t he event that the corporation
1083	1925		determines to make the list available on an electronic network, the
1084	1926		corporation may take reasonable steps to ensure that the information
	1927	+
	1928	+	SB228 HFLR Page 38
	1929	+	BOLD FACE denotes Committee Amendments. 1
	1930	+	2
	1931	+	3
	1932	+	4
	1933	+	5
	1934	+	6
	1935	+	7
	1936	+	8
	1937	+	9
	1938	+	10
	1939	+	11
	1940	+	12
	1941	+	13
	1942	+	14
	1943	+	15
	1944	+	16
	1945	+	17
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	1947	+	19
	1948	+	20
	1949	+	21
	1950	+	22
	1951	+	23
	1952	+	24
	1953	+
1085	1954		is available only to shareholders of the corporation. If the
1086	1955		meeting is to be held at a place, then the list shall also be
1087	1956		produced and kept at the time and place of the meeting during the
1088	1957		whole time thereof, and may be inspected by any shareholder who is
1089	1958		present. If the meeting is to be held solely by means of remote
1090	1959		communication, then the list shall also be open to the examination
1091	1960		of any shareholder during the whole time of the meeting on a
1092	1961		reasonably accessible electronic network, and the information
1093	1962		required to access the list shall be provided with the notice of the
1094	1963		meeting.
1095		-
1096	1964		B. Upon the willful neglect or refusal of the directors to
1097	1965		produce such a list at any meeting for the election of directors
1098	1966		held at a place, or to open such a list to examination on a
1099	1967		reasonably accessible electronic network during any meeting for the
1100		-
1101		-	ENR. S. B. NO. 228 Page 26
1102	1968		election of directors held solely by means of remote communication,
1103	1969		they shall be ineligible for election to any office at the meeting.
1104		-
1105	1970		C. For the purposes of the Oklahoma General Corporation Act,
1106	1971		“stock ledger” means one or more records administered by or on
1107	1972		behalf of the corporation in which the names of all the
1108	1973		corporation’s shareholders of record, the address and number of
1109	1974		shares registered in the name of each such shareholder and all
1110	1975		issuances and transfers of stock of the corporation are recorded in
1111	1976		accordance with Section 1069 of this title. The stock ledger shall
1112	1977		be the only evidence as to who are the shareholders entitled by this
	1978	+
	1979	+	SB228 HFLR Page 39
	1980	+	BOLD FACE denotes Committee Amendments. 1
	1981	+	2
	1982	+	3
	1983	+	4
	1984	+	5
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	2002	+	23
	2003	+	24
	2004	+
1113	2005		section to examine the list required by this section or to vote in
1114	2006		person or by proxy at any meeting of shareholders.
1115		-
1116	2007		SECTION 8. AMENDATORY 18 O.S. 2011, Section 1069, is
1117	2008		amended to read as follows:
1118		-
1119	2009		Section 1069.
1120		-
1121	2010		FORM OF RECORDS
1122		-
1123	2011		Any records maintained administered by or on behalf of a
1124	2012		corporation in the regular course of its business , including its
1125	2013		stock ledger, books of account, and minute books, may be kept on, or
1126	2014		by means of, or be in the form of, any information storage device ,
1127	2015		or method or one or more electronic networks or databases including
1128	2016		one or more distributed electronic networks or databases ; provided
1129	2017		that the records so kept can be converted into clearly legible paper
1130	2018		form within a reasonable time , and, with respect to the stock
1131	2019		ledger, that the records so kept (i) can be used to prepare the list
1132	2020		of shareholders specified in Sections 1064 and 1065 o f this title,
1133	2021		(ii) record the information specified in Sections 1037, 1040 and
1134	2022		1063, and subsection A of Section 1062 of this title, and (iii)
1135	2023		record transfers of stock as governed by Article 8 of the Uniform
1136	2024		Commercial Code. Any corporation shall so convert any records so
1137	2025		kept into clearly legible paper form upon the request of any person
1138	2026		entitled to inspect the records pursuant to any provision of the
1139	2027		Oklahoma General Corporation Act. Where records are kept in the
1140	2028		manner, a clearly legible paper form produced prepared from or by
	2029	+
	2030	+	SB228 HFLR Page 40
	2031	+	BOLD FACE denotes Committee Amendments. 1
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	2055	+
1141	2056		means of the information storage device , or method shall be
1142	2057		admissible in evidence and shall be accepted for all other purposes,
1143	2058		to the same extent as an original paper record of the same
1144		-
1145		-	ENR. S. B. NO. 228 Page 27
1146	2059		information would have been, when the pap er form accurately portrays
1147	2060		the record.
1148		-
1149	2061		SECTION 9. AMENDATORY 18 O.S. 2011, Section 1073, as
1150	2062		amended by Section 19, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
1151	2063		Section 1073), is amended to read as follows:
1152		-
1153	2064		Section 1073.
1154		-
1155	2065		CONSENT OF SHAREHOLDERS IN LIEU OF MEETING
1156		-
1157	2066		A. Unless otherwise provided for in the certificate of
1158	2067		incorporation, any action required by the provisions of the Oklahoma
1159	2068		General Corporation Act to be taken at any annual or special meeting
1160	2069		of shareholders of a corpor ation or any action which may be taken at
1161	2070		any annual or special meeting of shareholders, may be taken without
1162	2071		a meeting, without prior notice, and without a vote, if a consent or
1163	2072		consents in writing, setting forth the action so taken, shall be
1164	2073		signed by the holders of outstanding stock having not less than the
1165	2074		minimum number of votes that would be necessary to authorize or take
1166	2075		the action at a meeting at which all shares entitled to vote thereon
1167	2076		were present and voted and shall be delivered to the corporati on by
1168	2077		delivery to its registered office in this state, its principal place
1169	2078		of business, or an officer or agent of the corporation having
1170	2079		custody of the book in which proceedings of meetings of shareholders
	2080	+
	2081	+	SB228 HFLR Page 41
	2082	+	BOLD FACE denotes Committee Amendments. 1
	2083	+	2
	2084	+	3
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	2093	+	12
	2094	+	13
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	2100	+	19
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	2102	+	21
	2103	+	22
	2104	+	23
	2105	+	24
	2106	+
1171	2107		are recorded. Delivery made to a corporation ’s registered office
1172	2108		shall be by hand or by certified or registered mail, return receipt
1173	2109		requested.
1174		-
1175	2110		B. Unless otherwise provided for in the certificate of
1176	2111		incorporation, any action required by the provisions of the Oklahoma
1177	2112		General Corporation Act to be taken at a meeting of the members of a
1178	2113		nonstock corporation, or any action which may be taken at any
1179	2114		meeting of the members of a nonstock corporation, may be taken
1180	2115		without a meeting, without prior notice and without a vote, if a
1181	2116		consent or consents in writing, s etting forth the action taken,
1182	2117		shall be signed by members having not less than the minimum number
1183	2118		of votes that would be necessary to authorize or take such action at
1184	2119		a meeting at which all members having a right to vote thereon were
1185	2120		present and voted and shall be delivered to the corporation by
1186	2121		delivery to its registered office in this state, its principal place
1187	2122		of business, or an officer or agent of the corporation having
1188		-
1189		-	ENR. S. B. NO. 228 Page 28
1190	2123		custody of the book in which proceedings of meetings of shareholders
1191	2124		are recorded. Delivery made to a corporation ’s registered office
1192	2125		shall be by hand or by certified or registered mail, return receipt
1193	2126		requested.
1194		-
1195	2127		C. 1. A telegram, cablegram or other An electronic
1196	2128		transmission consenting to an action to be taken and transmitted by
1197	2129		a shareholder, member or proxyholder, or by a person or persons
1198	2130		authorized to act for a shareholder, member or proxyholder, shall be
	2131	+
	2132	+	SB228 HFLR Page 42
	2133	+	BOLD FACE denotes Committee Amendments. 1
	2134	+	2
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	2157	+
1199	2158		deemed to be written , and signed and dated for the purposes of this
1200	2159		section; provided that any telegram, cablegram or other electronic
1201	2160		transmission sets forth or is delivered with information from which
1202	2161		the corporation can determine:
1203		-
1204	2162		a. that the telegram, cablegram or other electronic
1205	2163		transmission was transmitted by the shareholder,
1206	2164		member or proxyholder or by a person or persons
1207	2165		authorized to act for the shareholder, member or
1208	2166		proxyholder, and
1209		-
1210	2167		b. the date on which the shareholder, member or
1211	2168		proxyholder or authorized person or persons
1212	2169		transmitted the telegram, cablegram or electronic
1213	2170		transmission.
1214		-
1215	2171		The date on which the telegram, cab legram or electronic
1216	2172		transmission is transmitted shall be deemed to be the date on which
1217	2173		the consent was signed. No consent given by telegram, cablegram or
1218	2174		other electronic transmission shall be deemed to have been delivered
1219	2175		until the consent is reproduce d in paper form and until the paper
1220	2176		form shall be delivered to the corporation by delivery to its
1221	2177		registered office in this state, its principal place of business or
1222	2178		an officer or agent of the corporation having custody of the book in
1223	2179		which proceedings of meetings of shareholders or members are
1224	2180		recorded. Delivery made to a corporation ’s registered office shall
1225	2181		be made by hand or by certified or registered mail, return receipt
	2182	+
	2183	+	SB228 HFLR Page 43
	2184	+	BOLD FACE denotes Committee Amendments. 1
	2185	+	2
	2186	+	3
	2187	+	4
	2188	+	5
	2189	+	6
	2190	+	7
	2191	+	8
	2192	+	9
	2193	+	10
	2194	+	11
	2195	+	12
	2196	+	13
	2197	+	14
	2198	+	15
	2199	+	16
	2200	+	17
	2201	+	18
	2202	+	19
	2203	+	20
	2204	+	21
	2205	+	22
	2206	+	23
	2207	+	24
	2208	+
1226	2209		requested. Notwithstanding the foregoing limitations on delivery,
1227	2210		consents given by telegram, cablegram or other electronic
1228	2211		transmission may be otherwise delivered to the principal place of
1229	2212		business of the corporation or to an officer or agent of the
1230	2213		corporation having custody of the book in which proceedings of
1231	2214		meetings of shareholde rs or members are recorded if, to the extent
1232		-
1233		-	ENR. S. B. NO. 228 Page 29
1234	2215		and in the manner provided by resolution of the board of directors
1235	2216		or governing body of the corporation.
1236		-
1237	2217		2. A consent given by electronic transmission is delivered to
1238	2218		the corporation upon the earliest of:
1239		-
1240	2219		a. when the consent enters an information processing
1241	2220		system, if any, designated by the corporation for
1242	2221		receiving consents, so long as the electronic
1243	2222		transmission is in a form capable of being processed
1244	2223		by that system and the corporation is able to retrieve
1245	2224		that electronic transmission,
1246		-
1247	2225		b. when a paper reproduction of the consent is delivered
1248	2226		to the corporation’s principal place of business or an
1249	2227		officer or agent of the corporation having custody of
1250	2228		the book in which proceedings of meetings of
1251	2229		stockholders or members are recorded,
1252		-
1253	2230		c. when a paper reproduction of the consent is delivered
1254	2231		to the corporation’s registered office in this state
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1255	2259		by hand or by certified or registered mail, return
1256	2260		receipt requested, or
1257		-
1258	2261		d. when delivered in such other manner, if any, provid ed
1259	2262		by resolution of the board of directors or governing
1260	2263		body of the corporation.
1261		-
1262	2264		Whether the corporation has so designated an information processing
1263	2265		system to receive consents is determined by the certificate of
1264	2266		incorporation, the bylaws or from the context and surrounding
1265	2267		circumstances including the conduct of the corporation. A consent
1266	2268		given by electronic transmission is delivered under this section even
1267	2269		if no person is aware of its receipt. Receipt of an electronic
1268	2270		acknowledgement from an information p rocessing system establishes
1269	2271		that a consent given by electronic transmission was received but, by
1270	2272		itself, does not establish that the content sent corresponds to the
1271	2273		content received.
1272		-
1273	2274		3. Any copy, facsimile or other reliable reproduction of a
1274	2275		consent in writing may be substituted or used in lieu of the
1275	2276		original writing for any and all purposes for which the original
1276		-
1277		-	ENR. S. B. NO. 228 Page 30
1278	2277		writing could be used; provided that the copy, facsimile or other
1279	2278		reliable reproduction shall be a complete reproduction of the entire
1280	2279		original writing.
1281		-
1282	2280		D. Every written consent shall bear the date of signature of
1283	2281		each shareholder or member who signs the consent and no No written
1284	2282		consent shall be effective to take the corporate action referred to
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1285	2310		therein unless, within sixty (60) days of the ea rliest dated consent
1286	2311		delivered in the manner required by this section to the corporation,
1287	2312		written consents signed by a sufficient number of holders or members
1288	2313		to take action are delivered to the corporation by delivery to its
1289	2314		registered office in this stat e, its principal place of business, or
1290	2315		an officer or agent of the corporation having custody of the book in
1291	2316		which proceedings of meetings of shareholders are recorded.
1292	2317		Delivery made to a corporation ’s registered office shall be by hand
1293	2318		or by certified or registered mail, return receipt requested in the
1294	2319		manner required by this section within sixty (60) days of the first
1295	2320		date on which a written consent is so delivered to the corporation .
1296	2321		Any person executing a consent may provide, whether through
1297	2322		instruction to an agent or otherwise, that such a consent will be
1298	2323		effective at a future time , including a time determined upon the
1299	2324		happening of an event, no later than sixty (60) days after such
1300	2325		instruction is given or such provision is made and, for the purposes
1301	2326		of this section, if evidence of such instruction or provision is
1302	2327		provided to the corporation , such later effective time shall serve
1303	2328		as the date of signature . Unless otherwise provided, any such
1304	2329		consent shall be revocable prior to its becoming effective.
1305		-
1306	2330		E. Prompt notice of the taking of the corporate action without
1307	2331		a meeting by less than unanimous written consent shall be given to
1308	2332		those shareholders or members, as the case may be, who have not
1309	2333		consented in writing and who, if the action had been taken at a
	2334	+
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	2360	+
1310	2361		meeting, would have been entitled to notice of the meeting if the
1311	2362		record date for notice of the meeting had been the date that written
1312	2363		consents signed by a sufficient number of shareholders or members to
1313	2364		take the action were delivered to the corporation as provided in
1314	2365		subsection B of this section. In the event that the action for
1315	2366		which consent is given is an action that would have required the
1316	2367		filing of a certificate under any other section of this title if the
1317	2368		action had been voted on by shareholders or b y members at a meeting
1318	2369		thereof the certificate filed under the other section shall state,
1319	2370		in lieu of any statement required by the section concerning any vote
1320		-
1321		-	ENR. S. B. NO. 228 Page 31
1322	2371		of shareholders or members, that written consent has been given in
1323	2372		accordance with the provisions of this section.
1324		-
1325	2373		SECTION 10. AMENDATORY 18 O.S. 2011, Section 1075.2, as
1326	2374		amended by Section 14, Chapter 88, O.S.L. 2019 (18 O.S. Supp. 2020,
1327	2375		Section 1075.2), is amended to read as follows:
1328		-
1329	2376		Section 1075.2.
1330		-
1331	2377		ELECTRONIC NOTICE; EFFECT IVENESS; REVOCATION OF CONSENT
1332		-
1333	2378		A. Without limiting the manner of which notice otherwise may be
1334	2379		given effectively to shareholders, any notice to shareholders given
1335	2380		by the corporation under any provision of the Oklahoma General
1336	2381		Corporation Act, the certific ate of incorporation, or the bylaws
1337	2382		shall be effective if given by a form of electronic transmission
1338	2383		consented to by the shareholder to whom the notice is given. The
	2384	+
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	2386	+	BOLD FACE denotes Committee Amendments. 1
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1339	2411		consent shall be revocable by the shareholder by written notice to
1340	2412		the corporation. The consent shall be deemed revoked if:
1341		-
1342	2413		1. The corporation is unable to deliver by electronic
1343	2414		transmission two consecutive notices given by the corporation in
1344	2415		accordance with the consent; and
1345		-
1346	2416		2. The inability becomes known to the secretary or an assistant
1347	2417		secretary of the corporation or to the transfer agent, or other
1348	2418		person responsible for the giving of notice; provided, however, the
1349	2419		inadvertent failure to treat the inability as a revocation shall not
1350	2420		invalidate any meeting or other action.
1351		-
1352	2421		B. Notice given pursuant to subsection A of this section shall
1353	2422		be deemed given if by:
1354		-
1355	2423		1. Facsimile telecommunication, when directed to a number at
1356	2424		which the shareholder has consented to receive notice;
1357		-
1358	2425		2. Electronic mail, when directed to an electronic mail address
1359	2426		at which the shareholder has consented to receive notice;
1360		-
1361	2427		3. A posting on an electronic network together with separate
1362	2428		notice to the shareholder of the specific posting, upon the later
1363	2429		of:
1364		-
1365		-	ENR. S. B. NO. 228 Page 32
1366		-
1367	2430		a. the posting, and
1368		-
1369	2431		b. the giving of the separate notice; and
1370		-
1371	2432		4. Any other form of electronic transmission, when directed to
1372	2433		the shareholder in accordance with the shareholder ’s consent.
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	2436	+	BOLD FACE denotes Committee Amendments. 1
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1373	2460
1374	2461		An affidavit of the secretary or an assistant secretary or of
1375	2462		the transfer agent or other agent of the corporation that the notice
1376	2463		has been given by a form of electronic transmission shall, in the
1377	2464		absence of fraud, be prima facie evidence of the facts stated
1378	2465		therein.
1379		-
1380	2466		C. For purposes of the Oklahoma General Corporation Act,
1381	2467		“electronic transmission ” means any form of communication, not
1382	2468		directly involving the physical transmission of paper , including the
1383	2469		use of, or participation in, one or more electronic networks or
1384	2470		databases including one or more distributed electronic networks or
1385	2471		databases, that creates a record that may be retained, retrie ved,
1386	2472		and reviewed by a recipient thereof, and that may be directly
1387	2473		reproduced in paper form by such a recipient through an automated
1388	2474		process.
1389		-
1390	2475		D. This section shall not apply to Sections 1045 or 1111 of
1391	2476		this title.
1392		-
1393	2477		SECTION 11. AMENDATORY 18 O.S. 2011, Section 1081, as
1394	2478		amended by Section 22, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
1395	2479		Section 1081), is amended to read as follows:
1396		-
1397	2480		Section 1081.
1398		-
1399	2481		MERGER OR CONSOLIDATION OF DOMESTIC CORPORATIONS
1400		-
1401	2482		A. Any two or more domestic corporations existing under the
1402	2483		laws of this state may merge into a single surviving corporation,
1403	2484		which may be any one of the constituent corporations or may
	2485	+
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	2487	+	BOLD FACE denotes Committee Amendments. 1
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1404	2512		consolidate into a new resulting corporation formed by the
1405	2513		consolidation, pursuant to an agreement of merger or consolidation,
1406	2514		as the case may be, complying and approved in accordance with the
1407	2515		provisions of this section.
1408		-
1409		-	ENR. S. B. NO. 228 Page 33
1410		-
1411	2516		B. The board of directors of each corporation which desires to
1412	2517		merge or consolidate shall adopt a resolution approving an agreement
1413	2518		of merger or consolidation and declaring its advisability. The
1414	2519		agreement shall state:
1415		-
1416	2520		1. The terms and conditions of the merger or consolidation;
1417		-
1418	2521		2. The mode of carrying the same into effect;
1419		-
1420	2522		3. In the case of a merger, the amendments or changes in the
1421	2523		certificate of incorporation of the surviving corporation as are
1422	2524		desired to be effected by the merger, which amendments or changes
1423	2525		may amend and restate the certificate of incorporation of the
1424	2526		surviving corporation in its entirety, or, if no amendments or
1425	2527		changes are desired, a statement that the certificate of
1426	2528		incorporation of the surviving corporation shall be its certificate
1427	2529		of incorporation of the surviving or resulting corporation;
1428		-
1429	2530		4. In the case of a consolidation, that the certificate of
1430	2531		incorporation of the resulting corporation shall be as is set forth
1431	2532		in an attachment to the agreement;
1432		-
1433	2533		5. The manner, if any, of converting the shares of each of the
1434	2534		constituent corporations into shares or other securities of the
1435	2535		corporation surviving or resulting from the me rger or consolidation,
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	2538	+	BOLD FACE denotes Committee Amendments. 1
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1436	2563		or of canceling some or all of the shares, and, if any shares of any
1437	2564		of the constituent corporations are not to remain outstanding, to be
1438	2565		converted solely into shares or other securities of the surviving or
1439	2566		resulting corporation or t o be canceled, the cash, property, rights,
1440	2567		or securities of any other corporation or entity which the holders
1441	2568		of the shares are to receive in exchange for or upon conversion of
1442	2569		the shares and the surrender of any certificates evidencing them,
1443	2570		which cash, property, rights, or securities of any other corporation
1444	2571		or entity may be in addition to or in lieu of shares or other
1445	2572		securities of the surviving or resulting corporation; and
1446		-
1447	2573		6. Other details or provisions as are deemed desirable,
1448	2574		including without limit ing the generality of the foregoing, a
1449	2575		provision for the payment of cash in lieu of the issuance or
1450	2576		recognition of fractional shares, interests or rights or other
1451	2577		securities of the surviving or resulting corporation or of any other
1452		-
1453		-	ENR. S. B. NO. 228 Page 34
1454	2578		corporation or entity th e shares, rights or other securities of
1455	2579		which are to be received in the merger or consolidation , or for any
1456	2580		other arrangement with respect thereto, consistent with the
1457	2581		provisions of Section 1036 of this title. The agreement so adopted
1458	2582		shall be executed an d acknowledged in accordance with the provisions
1459	2583		of Section 1007 of this title. Any of the terms of the agreement of
1460	2584		merger or consolidation may be made dependent upon facts
1461	2585		ascertainable outside of the agreement; provided, that the manner in
1462	2586		which these facts shall operate upon the terms of the agreement is
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	2589	+	BOLD FACE denotes Committee Amendments. 1
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	2613	+
1463	2614		clearly and expressly set forth in the agreement of merger or
1464	2615		consolidation. The term “facts” as used in this paragraph ,
1465	2616		includes, but is not limited to, the occurrence of any event ,
1466	2617		including a determination or action by any person or body , including
1467	2618		the corporation.
1468		-
1469	2619		C. The agreement required by the provisions of subsection B of
1470	2620		this section shall be submitted to the shareholders of each
1471	2621		constituent corporation at an annual or special meeting thereof for
1472	2622		the purpose of acting on the agreement. Due notice of the time,
1473	2623		place, and purpose of the meeting shall be mailed to each holder of
1474	2624		stock whether voting or nonvoting, of the corporation at the address
1475	2625		which appears on the records of the corporation, at least twenty
1476	2626		(20) days before the date of the meeting. The notice shall contain
1477	2627		a copy of the agreement or a brief summary thereof; provided,
1478	2628		however, the notice shall be effective only with respect to mergers
1479	2629		or consolidations for which the notice of the shareholders meeting
1480	2630		to vote thereon has been mailed after November 1, 1988. At the
1481	2631		meeting the agreement shall be considered and a vote taken for its
1482	2632		adoption or rejection. If a majority of the outstanding stock of
1483	2633		the corporation entitled to vote t hereon shall be voted for the
1484	2634		adoption of the agreement, that fact shall be certified on the
1485	2635		agreement by the secretary or the assistant secretary of the
1486	2636		corporation; provided, that such certification on the agreement
1487	2637		shall not be required if a certificate of merger or consolidation is
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	2639	+	SB228 HFLR Page 52
	2640	+	BOLD FACE denotes Committee Amendments. 1
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	2664	+
1488	2665		filed in lieu of filing the agreement. If the agreement shall be so
1489	2666		adopted and certified by each constituent corporation, it shall then
1490	2667		be filed and shall become effective in accordance with the
1491	2668		provisions of Section 1007 o f this title. In lieu of filing an
1492	2669		agreement of merger or consolidation required by this section, the
1493	2670		surviving or resulting corporation may file a certificate of merger
1494	2671		or consolidation executed in accordance with the provisions of
1495	2672		Section 1007 of this t itle and which states:
1496		-
1497		-	ENR. S. B. NO. 228 Page 35
1498		-
1499	2673		1. The name and state of incorporation of each of the
1500	2674		constituent corporations;
1501		-
1502	2675		2. That an agreement of merger or consolidation has been
1503	2676		approved, adopted, executed , and acknowledged by each of the
1504	2677		constituent corporations in accor dance with the provisions of this
1505	2678		section;
1506		-
1507	2679		3. The name of the surviving or resulting corporation;
1508		-
1509	2680		4. In the case of a merger, the amendments or changes in the
1510	2681		certificate of incorporation of the surviving corporation, which may
1511	2682		be amended and restated, t hat are desired to be effected by the
1512	2683		merger, which amendments or changes may amend and restate the
1513	2684		certificate of incorporation of the surviving corporation in its
1514	2685		entirety, or, if no amendments or changes are desired, a statement
1515	2686		that the certificate of incorporation of the surviving corporation
1516	2687		shall be its certificate of incorporation;
1517	2688
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	2714	+
1518	2715		5. In the case of a consolidation, that the certificate of
1519	2716		incorporation of the resulting corporation shall be as is set forth
1520	2717		in an attachment to the certificate;
1521		-
1522	2718		6. That the executed agreement of consolidation or merger is on
1523	2719		file at the principal place of business of the surviving or
1524	2720		resulting corporation, stating the address thereof; and
1525		-
1526	2721		7. That a copy of the agreement of consolidation or merger will
1527	2722		be furnished by the surviving or resulting corporation, on request
1528	2723		and without cost, to any shareholder of any constituent corporation.
1529	2724		For purposes of Sections 1084 and 1086 of this title, the term
1530	2725		“shareholder” shall be deemed to include “member”.
1531		-
1532	2726		D. Any agreement of merger or consolidation may contain a
1533	2727		provision that at any time prior to the time that the agreement, or
1534	2728		a certificate filed with the Secretary of State in lieu thereof,
1535	2729		becomes effective in accordance with Section 1007 of this title, the
1536	2730		agreement may be terminated by the board of directors of any
1537	2731		constituent corporation notwithstanding approval of the agreement by
1538	2732		the shareholders of all or any of the constituent corporations;
1539	2733		provided, if the agreement of merger or consolidation is terminated
1540		-
1541		-	ENR. S. B. NO. 228 Page 36
1542	2734		after the filing of the agreement, or a certificate filed with the
1543	2735		Secretary of State in lieu thereof, but before the agreement or
1544	2736		certificate has become effective, a certificate of termination of
1545	2737		merger or consolidation shall be filed in accordance with Section
1546	2738		1007 of this title. Any agreement of merger or consolidation may
	2739	+
	2740	+	SB228 HFLR Page 54
	2741	+	BOLD FACE denotes Committee Amendments. 1
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	2765	+
1547	2766		contain a provision that the boards of directors of the constituent
1548	2767		corporations may amend the agreement at any time prior to the time
1549	2768		that the agreement, or a certificate filed with the Secre tary of
1550	2769		State in lieu thereof, becomes effective in accordance with Section
1551	2770		1007 of this title; provided, that an amendment made subsequent to
1552	2771		the adoption of the agreement by the shareholders of any constituent
1553	2772		corporation shall not:
1554		-
1555	2773		1. Alter or change t he amount or kind of shares, securities,
1556	2774		cash, property, or rights to be received in exchange for or on
1557	2775		conversion of all or any of the shares of any class or series
1558	2776		thereof of the constituent corporation;
1559		-
1560	2777		2. Alter or change any term of the certificate of incorporation
1561	2778		of the surviving corporation to be effected by the merger or
1562	2779		consolidation; or
1563		-
1564	2780		3. Alter or change any of the terms and conditions of the
1565	2781		agreement if an alteration or change would adversely affect the
1566	2782		holders of any class or series thereof of the constituent
1567	2783		corporation.
1568		-
1569	2784		If the agreement of merger or consolidation is amended after the
1570	2785		filing of the agreement, or a certificate in lieu thereof, with the
1571	2786		Secretary of State, but before the agreement or certificate has
1572	2787		become effective, a certifi cate of amendment of merger or
1573	2788		consolidation shall be filed in accordance with Section 1007 of this
1574	2789		title.
1575	2790
	2791	+	SB228 HFLR Page 55
	2792	+	BOLD FACE denotes Committee Amendments. 1
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	2816	+
1576	2817		E. In the case of a merger, the certificate of incorporation of
1577	2818		the surviving corporation shall automatically be amended to the
1578	2819		extent, if any, that changes in the certificate of incorporation are
1579	2820		set forth in the certificate of merger.
1580		-
1581	2821		F. Notwithstanding the requirements of subsection C of this
1582	2822		section, unless required by its certificate of incorporation, no
1583		-
1584		-	ENR. S. B. NO. 228 Page 37
1585	2823		vote of shareholders of a constituent cor poration surviving a merger
1586	2824		shall be necessary to authorize a merger if:
1587		-
1588	2825		1. The agreement of merger does not amend in any respect the
1589	2826		certificate of incorporation of the constituent corporation;
1590		-
1591	2827		2. Each share of stock of the constituent corporation
1592	2828		outstanding immediately prior to the effective date of the merger is
1593	2829		to be an identical outstanding or treasury share of the surviving
1594	2830		corporation after the effective date of the merger; and
1595		-
1596	2831		3. Either no shares of common stock of the surviving
1597	2832		corporation and no shares, securities , or obligations convertible
1598	2833		into such stock are to be issued or delivered under the plan of
1599	2834		merger, or the authorized unissued shares or the treasury shares of
1600	2835		common stock of the surviving corporation to be issued or delivered
1601	2836		under the plan of merger plus those initially issuable upon
1602	2837		conversion of any other shares, securities , or obligations to be
1603	2838		issued or delivered under the plan do not exceed twenty percent
1604	2839		(20%) of the shares of common stock of the constituent corporation
1605	2840		outstanding immediately prior to the effective date of the merger.
	2841	+
	2842	+	SB228 HFLR Page 56
	2843	+	BOLD FACE denotes Committee Amendments. 1
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	2867	+
1606	2868		No vote of shareholders of a constituent corporation shall be
1607	2869		necessary to authorize a merger or consolidation if no shares of the
1608	2870		stock of the corporation shall have been issued prior to the
1609	2871		adoption by the board of directors of the resolution approving the
1610	2872		agreement of merger or consolidation. If an agreement of merger is
1611	2873		adopted by the constituent corporation surviving the merger, by
1612	2874		action of its board of directors and without any vote of it s
1613	2875		shareholders pursuant to the provisions of this subsection, the
1614	2876		secretary or assistant secretary of that corporation shall certify
1615	2877		on the agreement that the agreement has been adopted pursuant to the
1616	2878		provisions of this subsection and:
1617		-
1618	2879		a. if it has been adopted pursuant to paragraph 1 of this
1619	2880		subsection, that the conditions specified have been
1620	2881		satisfied, or
1621		-
1622	2882		b. if it has been adopted pursuant to paragraph 2 of this
1623	2883		subsection, that no shares of stock of the corporation
1624	2884		were issued prior to the adoption by t he board of
1625	2885		directors of the resolution approving the agreement of
1626	2886		merger or consolidation; provided, that such
1627		-
1628		-	ENR. S. B. NO. 228 Page 38
1629	2887		certification on the agreement shall not be required
1630	2888		if a certificate of merger or consolidation is filed
1631	2889		in lieu of filing the agreement.
1632		-
1633	2890		The agreement so adopted and certified shall then be filed and
1634	2891		shall become effective in accordance with the provisions of Section
	2892	+
	2893	+	SB228 HFLR Page 57
	2894	+	BOLD FACE denotes Committee Amendments. 1
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	2918	+
1635	2919		1007 of this title. Filing shall constitute a representation by the
1636	2920		person who executes the certificate that the facts stated in the
1637	2921		certificate remain true immediately prior to filing.
1638		-
1639	2922		G. 1. Notwithstanding the requirements of subsection C of this
1640	2923		section, unless expressly required by its certificate of
1641	2924		incorporation, no vote of shareholders of a constituent corporation
1642	2925		shall be necessary to authorize a merger with or into a single
1643	2926		direct or indirect wholly owned subsidiary of the constituent
1644	2927		corporation if:
1645		-
1646	2928		a. the constituent corporation and the direct or indirect
1647	2929		wholly owned subsidiary of the constituent corporation
1648	2930		are the only constituent entities to the merger,
1649		-
1650	2931		b. each share or fraction of a share of the capital stock
1651	2932		of the constituent corporation outstanding immediately
1652	2933		before the effective time of the merger is converted
1653	2934		in the merger into a share or equal fraction of shar e
1654	2935		of capital stock of a holding company having the same
1655	2936		designations, rights, powers , and preferences, and the
1656	2937		qualifications, limitations , and restrictions thereof,
1657	2938		as the share of stock of the constituent corporation
1658	2939		being converted in the merger,
1659		-
1660	2940		c. the holding company and the constituent corporation
1661	2941		are domestic corporations of this state and the direct
1662	2942		or indirect wholly owned subsidiary that is the other
	2943	+
	2944	+	SB228 HFLR Page 58
	2945	+	BOLD FACE denotes Committee Amendments. 1
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	2969	+
1663	2970		constituent entity to the merger is a domestic
1664	2971		corporation or limited liability company of this
1665	2972		state,
1666		-
1667	2973		d. the certificate of incorporation and bylaws of the
1668	2974		holding company immediately following the effective
1669	2975		time of the merger contain provisions identical to the
1670	2976		certificate of incorporation and bylaws of the
1671		-
1672		-	ENR. S. B. NO. 228 Page 39
1673	2977		constituent corporation immediately before the
1674	2978		effective time of the merger, other than provisions,
1675	2979		if any, regarding the incorporator or incorporators,
1676	2980		the corporate name, the registered office and agent,
1677	2981		the initial board of directors , and the initial
1678	2982		subscribers of shares and provisions containe d in any
1679	2983		amendment to the certificate of incorporation as were
1680	2984		necessary to effect a change, exchange,
1681	2985		reclassification, subdivision, combination or
1682	2986		cancellation of stock, if a change, exchange,
1683	2987		reclassification, or cancellation has become
1684	2988		effective,
1685		-
1686	2989		e. as a result of the merger, the constituent corporation
1687	2990		or its successor corporation becomes or remains a
1688	2991		direct or indirect wholly owned subsidiary of the
1689	2992		holding company,
1690	2993
	2994	+	SB228 HFLR Page 59
	2995	+	BOLD FACE denotes Committee Amendments. 1
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	3019	+
1691	3020		f. the directors of the constituent corporation become or
1692	3021		remain the directors of the holding company upon the
1693	3022		effective time of the merger,
1694		-
1695	3023		g. the organizational documents of the surviving entity
1696	3024		immediately following the effective time of the merger
1697	3025		contain provisions identical to the certificate of
1698	3026		incorporation of the constituent corpor ation
1699	3027		immediately before the effective time of the merger,
1700	3028		other than provisions, if any, regarding the
1701	3029		incorporator or incorporators, the corporate or entity
1702	3030		name, the registered office and agent, the initial
1703	3031		board of directors and the initial subscribers for
1704	3032		shares, references to members rather than
1705	3033		shareholders, references to interests, units or the
1706	3034		like rather than stock or shares, references to
1707	3035		managers, managing members or other members of the
1708	3036		governing body rather than directors and such
1709	3037		provisions contained in any amendment to the
1710	3038		certificate of incorporation as were necessary to
1711	3039		effect a change, exchange, reclassification,
1712	3040		subdivision, combination or cancellation of stock, if
1713	3041		such change, exchange, reclassification, subdivision,
1714		-
1715		-	ENR. S. B. NO. 228 Page 40
1716	3042		combination or cance llation has become effective;
1717	3043		provided, however, that:
	3044	+
	3045	+	SB228 HFLR Page 60
	3046	+	BOLD FACE denotes Committee Amendments. 1
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1718	3070
1719	3071		(1) if the organizational documents of the surviving
1720	3072		entity do not contain the following provisions,
1721	3073		they shall be amended in the merger to contain
1722	3074		provisions requiring that:
1723		-
1724	3075		(a) any act or transaction by or involving the
1725	3076		surviving entity, other than the election or
1726	3077		removal of directors or managers, managing
1727	3078		members or other members of the governing
1728	3079		body of the surviving entity, that requires
1729	3080		for its adoption under this act the Oklahoma
1730	3081		General Corporation Act or its
1731	3082		organizational documents the approval of the
1732	3083		shareholders or members of the surviving
1733	3084		entity shall, by specific reference to this
1734	3085		subsection, require, in addition, the
1735	3086		approval of the shareholders of the holding
1736	3087		company (or any successor by merger), by the
1737	3088		same vote as is required by this act the
1738	3089		Oklahoma General Corporation Act and/or by
1739	3090		the organizational documents of the
1740	3091		surviving entity; provided, however, that
1741	3092		for purposes of this subdivision, any
1742	3093		surviving entity that is not a corporati on
1743	3094		shall include in such amendment a
	3095	+
	3096	+	SB228 HFLR Page 61
	3097	+	BOLD FACE denotes Committee Amendments. 1
	3098	+	2
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	3121	+
1744	3122		requirement that the approval of the
1745	3123		shareholders of the holding company be
1746	3124		obtained for any act or transaction by or
1747	3125		involving the surviving entity, other than
1748	3126		the election or removal of directors or
1749	3127		managers, managing members or other members
1750	3128		of the governing body of the surviving
1751	3129		entity, which would require the approval of
1752	3130		the shareholders of the surviving entity if
1753	3131		the surviving entity were a corporation
1754	3132		subject to this act the Oklahoma General
1755	3133		Corporation Act,
1756		-
1757		-
1758		-	ENR. S. B. NO. 228 Page 41
1759	3134		(b) any amendment of the organizational
1760	3135		documents of a surviving entity that is not
1761	3136		a corporation, which amendment would, if
1762	3137		adopted by a corporation subject to this act
1763	3138		the Oklahoma General Corporation Act , be
1764	3139		required to be included in the certificate
1765	3140		of incorporation of such corporation, shall,
1766	3141		by specific reference to this subsection,
1767	3142		require, in addition, the approval of the
1768	3143		shareholders of the holding company, or any
1769	3144		successor by merger, by the same vote as is
1770	3145		required by this act the Oklahoma General
	3146	+
	3147	+	SB228 HFLR Page 62
	3148	+	BOLD FACE denotes Committee Amendments. 1
	3149	+	2
	3150	+	3
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	3172	+
1771	3173		Corporation Act and/or by the organizational
1772	3174		documents of the surviving entity, and
1773		-
1774	3175		(c) the business and affairs of a surviving
1775	3176		entity that is not a corporation shall be
1776	3177		managed by or under the direction of a board
1777	3178		of directors, board of managers or other
1778	3179		governing body consisting of individuals who
1779	3180		are subject to the same fiduciary duties
1780	3181		applicable to, and who are liable for breach
1781	3182		of such duties to the same extent as,
1782	3183		directors of a corporation subject to this
1783	3184		act the Oklahoma General Corporation Act ,
1784	3185		and
1785		-
1786	3186		(2) the organizational documents of the surviving
1787	3187		entity may be amended in the merger:
1788		-
1789	3188		(a) to reduce the number of classes and shares
1790	3189		of capital stock or other equity interests
1791	3190		or units that the surviving entity is
1792	3191		authorized to issue, and
1793		-
1794	3192		(b) to eliminate any provision authorized by
1795	3193		subsection D of Section 1027 of this title;
1796	3194		and
1797		-
1798	3195		h. the shareholders of the constituent corporation do not
1799	3196		recognize gain or loss for federal income tax purposes
1800	3197
1801		-	ENR. S. B. NO. 228 Page 42
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	3199	+	BOLD FACE denotes Committee Amendments. 1
	3200	+	2
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	3223	+
1802	3224		as determined by the board of directors of the
1803	3225		constituent corporati on.
1804		-
1805	3226		Neither division (1) of subparagraph g of paragraph 1 of this
1806	3227		subsection nor any provision of a surviving entity ’s organizational
1807	3228		documents required by division (1) of subparagraph g of paragraph 1
1808	3229		of this subsection shall be deemed or construed to req uire approval
1809	3230		of the shareholders of the holding company to elect or remove
1810	3231		directors or managers, managing members or other members of the
1811	3232		governing body of the surviving entity.
1812		-
1813	3233		2. As used in this subsection, the term “holding company” means
1814	3234		a corporation which, from its incorporation until consummation of a
1815	3235		merger governed by this subsection, was at all times a direct or
1816	3236		indirect wholly owned subsidiary of the constituent corporation and
1817	3237		whose capital stock is issued in a merger.
1818		-
1819	3238		3. As used in this sub section, the term “organizational
1820	3239		documents” means, when used in reference to a corporation, the
1821	3240		certificate of incorporation of the corporation and, when used in
1822	3241		reference to a limited liability company, the articles of
1823	3242		organization and the operating agre ement of the limited liability
1824	3243		company.
1825		-
1826	3244		4. From and after the effective time of a merger adopted by a
1827	3245		constituent corporation by action of its board of directors and
1828	3246		without any vote of shareholders pursuant to this subsection:
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	3248	+	SB228 HFLR Page 64
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1829	3273
1830	3274		a. to the extent the restri ction of Section 1090.3 of
1831	3275		this title applied to the constituent corporation and
1832	3276		its shareholders at the effective time of the merger,
1833	3277		restrictions shall apply to the holding company and
1834	3278		its shareholders immediately after the effective time
1835	3279		of the merger as though it were the constituent
1836	3280		corporation, and all shareholders of stock of the
1837	3281		holding company acquired in the merger shall for
1838	3282		purposes of Section 1090.3 of this title be deemed to
1839	3283		have been acquired at the time that the shares of
1840	3284		stock of the constit uent corporation converted in the
1841	3285		merger were acquired; provided, that any shareholder
1842	3286		who immediately before the effective time of the
1843	3287		merger was not an interested shareholder within the
1844		-
1845		-	ENR. S. B. NO. 228 Page 43
1846	3288		meaning of Section 1090.3 of this title shall not
1847	3289		solely by reason of the merger become an interested
1848	3290		shareholder of the holding company,
1849		-
1850	3291		b. if the corporate name of the holding company
1851	3292		immediately following the effective time of the merger
1852	3293		is the same as the corporate name of the constituent
1853	3294		corporation immediately before the effective time of
1854	3295		the merger, the shares of capital stock of the holding
1855	3296		company into which the shares of capital stock of the
1856	3297		constituent corporation are converted in the merger
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	3299	+	SB228 HFLR Page 65
	3300	+	BOLD FACE denotes Committee Amendments. 1
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	3324	+
1857	3325		shall be represented by the stock certificates that
1858	3326		previously represent ed the shares of capital stock of
1859	3327		the constituent corporation, and
1860		-
1861	3328		c. to the extent a shareholder of the constituent
1862	3329		corporation immediately before the merger had standing
1863	3330		to institute or maintain derivative litigation on
1864	3331		behalf of the constituent corporat ion, nothing in this
1865	3332		section shall be deemed to limit or extinguish such
1866	3333		standing.
1867		-
1868	3334		5. If any agreement of merger is adopted by a constituent
1869	3335		corporation by action of its board of directors and without any vote
1870	3336		of shareholders pursuant to this subsection, the secretary or
1871	3337		assistant secretary of the constituent corporation shall certify on
1872	3338		the agreement that the agreement has been adopted pursuant to this
1873	3339		subsection and that the conditions specified in paragraph 1 of this
1874	3340		subsection have been satisfied; prov ided, that such certification on
1875	3341		the agreement shall not be required if a certificate of merger or
1876	3342		consolidation is filed in lieu of filing the agreement. The
1877	3343		agreement so adopted and certified shall then be filed and become
1878	3344		effective in accordance with S ection 1007 of this title. Filing
1879	3345		shall constitute a representation by the person who executes the
1880	3346		agreement that the facts stated in the certificate remain true
1881	3347		immediately before the filing.
1882	3348
	3349	+	SB228 HFLR Page 66
	3350	+	BOLD FACE denotes Committee Amendments. 1
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	3374	+
1883	3375		H. Notwithstanding the requirements of subsection C of this
1884	3376		section, unless expressly required by its certificate of
1885	3377		incorporation, no vote of shareholders of a constituent corporation
1886	3378		that has a class or series of stock that is listed on a national
1887	3379		securities exchange or held of record by more than two thousand
1888		-
1889		-	ENR. S. B. NO. 228 Page 44
1890	3380		holders immediately prior to the execution of the agreement of
1891	3381		merger by such constituent corporation shall be necessary to
1892	3382		authorize a merger if:
1893		-
1894	3383		1. The agreement of merger expressly (a) permits or requires
1895	3384		such merger to be effected under this subsection a nd (b) provides
1896	3385		that such merger shall be effected as soon as practicable following
1897	3386		the consummation of the offer referred to in paragraph 2 of this
1898	3387		subsection if such merger is effected under this subsection;
1899		-
1900	3388		2. A corporation consummates an offer for all of the
1901	3389		outstanding stock of such constituent corporation on the terms
1902	3390		provided in such agreement of merger that, absent this subsection,
1903	3391		would be entitled to vote on the adoption or rejection of the
1904	3392		agreement of merger; provided, however, that such offer may be
1905	3393		conditioned on the tender of a minimum number or percentage of
1906	3394		shares of the stock of such constituent corporation, or of any
1907	3395		class or series thereof, and such offer may exclude any excluded
1908	3396		stock; and provided further, that the corporation may consummate
1909	3397		separate offers for separate classes or series of the stock of such
1910	3398		constituent corporation;
1911	3399
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	3423	+	23
	3424	+	24
	3425	+
1912	3426		3. Immediately following the consummation of the offer referred
1913	3427		to in paragraph 2 of this subsection, the stock irrevocably accepted
1914	3428		for purchase or exchan ge pursuant to such offer and received by the
1915	3429		depository prior to expiration of such offer, together with the
1916	3430		stock otherwise owned by the consummating corporation or its
1917	3431		affiliates and any rollover stock, equals at least such percentage
1918	3432		of the shares of stock of such constituent corporation, and of each
1919	3433		class or series thereof, that, absent this subsection, would be
1920	3434		required to adopt the agreement of merger by this chapter and by the
1921	3435		certificate of incorporation of such constituent corporation;
1922		-
1923	3436		4. The corporation consummating the offer referred to in
1924	3437		paragraph 2 of this subsection merges with or into such constituent
1925	3438		corporation pursuant to such agreement;
1926		-
1927	3439		5. Each outstanding share, other than shares of excluded stock,
1928	3440		of each class or series of stock of the constituent corporation that
1929	3441		is the subject of and not irrevocably accepted for purchase or
1930	3442		exchange in the offer referred to in paragraph 2 of this subsection
1931	3443		is to be converted in such merger into, or into the right to
1932		-
1933		-	ENR. S. B. NO. 228 Page 45
1934	3444		receive, the same amount and ki nd of cash, property, rights or
1935	3445		securities paid for shares of such class or series of stock of such
1936	3446		constituent corporation irrevocably accepted for purchase or
1937	3447		exchange in such offer; and
1938		-
1939	3448		6. As used in this subsection only, the term:
	3449	+
	3450	+	SB228 HFLR Page 68
	3451	+	BOLD FACE denotes Committee Amendments. 1
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	3457	+	7
	3458	+	8
	3459	+	9
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	3461	+	11
	3462	+	12
	3463	+	13
	3464	+	14
	3465	+	15
	3466	+	16
	3467	+	17
	3468	+	18
	3469	+	19
	3470	+	20
	3471	+	21
	3472	+	22
	3473	+	23
	3474	+	24
1940	3475
1941	3476		a. “affiliate” means, in respect of the corporation
1942	3477		making the offer referred to in paragraph 2 of this
1943	3478		subsection, any person that (1) owns, directly or
1944	3479		indirectly, all of the outstanding stock of such
1945	3480		corporation or (2) is a direct or indirect wholly
1946	3481		owned subsidiary of suc h corporation or of any person
1947	3482		referred to in proviso (1) of this subparagraph,
1948		-
1949	3483		b. “consummates”, and with correlative meaning,
1950	3484		“consummation” and “consummating”, means irrevocably
1951	3485		accepts for purchase or exchange stock tendered
1952	3486		pursuant to an offer,
1953		-
1954	3487		c. “depository” means an agent, including a depository,
1955	3488		appointed to facilitate consummation of the offer
1956	3489		referred to in paragraph 2 of this subsection,
1957		-
1958	3490		d. “excluded stock” means (1) stock of such constituent
1959	3491		corporation that is owned at the commencement of the
1960	3492		offer referred to in paragraph 2 of this subsection by
1961	3493		such constituent corporation, the corporation making
1962	3494		the offer referred to in paragraph 2 of this
1963	3495		subsection, any person that owns, directly or
1964	3496		indirectly, all of the outstanding stock of the
1965	3497		corporation making such offer, or any direct or
1966	3498		indirect wholly owned subsidiary of any of the
1967	3499		foregoing and (2) rollover stock,
1968	3500
	3501	+	SB228 HFLR Page 69
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	3524	+	23
	3525	+	24
	3526	+
1969	3527		e. “person” means any individual, corporation,
1970	3528		partnership, limited liability company, unincorporated
1971	3529		association or other entity,
1972		-
1973	3530		f. “received” solely for purposes of paragraph 3 of this
1974	3531		subsection means (1) with respect to certificated
1975	3532		shares, physical receipt of a stock certificate
1976		-
1977		-	ENR. S. B. NO. 228 Page 46
1978	3533		accompanied by an executed letter of transmittal, (2)
1979	3534		with respect to uncertificated shares held of record
1980	3535		by a clearing corporation as nominee, transfer into
1981	3536		the depository’s account by means of an agent’s
1982	3537		message, and (3) with respect to uncertificated shares
1983	3538		held of record by a person other than a clearing
1984	3539		corporation as nominee, physical receipt of an
1985	3540		executed letter of transmittal by the depository;
1986	3541		provided, however, that shares shall cease to be
1987	3542		“received” (4) with respect to certificated shares, if
1988	3543		the certificate representing such shares was canceled
1989	3544		prior to consummation of the offer referred to in
1990	3545		paragraph 2 of this subsection, or (5) with respect
1991	3546		to uncertificated shares, to the extent such
1992	3547		uncertificated shares have been reduced or eliminated
1993	3548		due to any sale of such shares prior to consummation
1994	3549		of the offer referred to in paragraph 2 of this
1995	3550		subsection, and
1996	3551
	3552	+	SB228 HFLR Page 70
	3553	+	BOLD FACE denotes Committee Amendments. 1
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	3555	+	3
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	3575	+	23
	3576	+	24
	3577	+
1997	3578		g. “rollover stock” means any shares of stock of such
1998	3579		constituent corporation that are the subject of a
1999	3580		written agreement requiring such shares to be
2000	3581		transferred, contributed or delivered to the
2001	3582		consummating corporation or any of its affiliates in
2002	3583		exchange for stock or other equity interests in such
2003	3584		consummating corporation or an affiliate thereof;
2004	3585		provided, however, that such shares of stock shall
2005	3586		cease to be rollover stock for purposes of paragraph 3
2006	3587		of this subsection if, immediately prior to the time
2007	3588		the merger becomes effective under this chapter, such
2008	3589		shares have not been transferred, contributed or
2009	3590		delivered to the consummating corporation or any of
2010	3591		its affiliates pursuant to such written agreement.
2011		-
2012	3592		If an agreement of merger is adopted with out the vote of
2013	3593		shareholders of a corporation pursuant to this subsection, the
2014	3594		secretary or assistant secretary of the surviving corporation shall
2015	3595		certify on the agreement that the agreement has been adopted
2016	3596		pursuant to this subsection and that the conditi ons specified in
2017	3597		this subsection, other than the condition listed in paragraph 4 of
2018	3598		this subsection, have been satisfied; provided, that such
2019	3599		certification on the agreement shall not be required if a
2020		-
2021		-	ENR. S. B. NO. 228 Page 47
2022	3600		certificate of merger is filed in lieu of filing the agr eement. The
2023	3601		agreement so adopted and certified shall then be filed and shall
	3602	+
	3603	+	SB228 HFLR Page 71
	3604	+	BOLD FACE denotes Committee Amendments. 1
	3605	+	2
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	3613	+	10
	3614	+	11
	3615	+	12
	3616	+	13
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	3618	+	15
	3619	+	16
	3620	+	17
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	3625	+	22
	3626	+	23
	3627	+	24
	3628	+
2024	3629		become effective, in accordance with Section 1007 of this title.
2025	3630		Such filing shall constitute a representation by the person who
2026	3631		executes the agreement that the facts stated in the certificate
2027	3632		remain true immediately prior to such filing.
2028		-
2029	3633		SECTION 12. AMENDATORY 18 O.S. 2011, Section 1082, as
2030	3634		amended by Section 23, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
2031	3635		Section 1082), is amended to read as follows:
2032		-
2033	3636		Section 1082.
2034		-
2035	3637		MERGER OR CONSOLIDATION OF DOMESTIC AND FOREIGN CORPORATIONS;
2036	3638		SERVICE OF PROCESS UPON SURVIVING OR RESULTING CORPORATION
2037		-
2038	3639		A. Any one or more domestic corporations of this state may
2039	3640		merge or consolidate with one or more other corporations of a ny
2040	3641		other state or states of the United States, or of the District of
2041	3642		Columbia, if the laws of the other state or states or of the
2042	3643		District permit a corporation of the jurisdiction to merge or
2043	3644		consolidate with a corporation of another jurisdiction foreign
2044	3645		corporations, unless the laws of the jurisdiction or jurisdictions
2045	3646		under which such foreign corporation or corporations are organized
2046	3647		prohibit the merger or consolidation . The constituent corporations
2047	3648		may merge into a single surviving corporation, which ma y be any one
2048	3649		of the constituent corporations, or they may consolidate into a new
2049	3650		resulting corporation formed by the consolidation, which may be a
2050	3651		corporation of the state of incorporation jurisdiction of
2051	3652		organization of any one of the constituent corporat ions, pursuant to
	3653	+
	3654	+	SB228 HFLR Page 72
	3655	+	BOLD FACE denotes Committee Amendments. 1
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	3657	+	3
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	3661	+	7
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	3666	+	12
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	3676	+	22
	3677	+	23
	3678	+	24
	3679	+
2052	3680		an agreement of merger or consolidation, as the case may be,
2053	3681		complying and approved in accordance with the provisions of this
2054	3682		section. In addition, any one or more corporations organized under
2055	3683		the laws of any jurisdiction other than one of the United States may
2056	3684		merge or consolidate with one or more corporations existing under
2057	3685		the laws of this state if the surviving or resulting corporation
2058	3686		will be a corporation of this state, and if the laws under which the
2059	3687		other corporation or corporatio ns are formed permit a corporation of
2060	3688		that jurisdiction to merge or consolidate with a corporation of
2061	3689		another jurisdiction .
2062		-
2063		-
2064		-	ENR. S. B. NO. 228 Page 48
2065	3690		B. All the constituent corporations shall enter into an
2066	3691		agreement of merger or consolidation. The agreement shall state:
2067		-
2068	3692		1. The terms and conditions of the merger or consolidation;
2069		-
2070	3693		2. The mode of carrying the same into effect;
2071		-
2072	3694		3. In the case of a merger in which the surviving corporation
2073	3695		is a domestic corporation, such amendments or changes in the
2074	3696		certificate of incorporation of t he surviving corporation as are
2075	3697		desired to be effected by the merger, which amendments or changes
2076	3698		may amend and restate the certificate of incorporation of the
2077	3699		surviving corporation in its entirety, or, if no such amendments or
2078	3700		changes are desired, a state ment that the certificate of
2079	3701		incorporation of the surviving corporation shall be its certificate
2080	3702		of incorporation;
2081	3703
	3704	+	SB228 HFLR Page 73
	3705	+	BOLD FACE denotes Committee Amendments. 1
	3706	+	2
	3707	+	3
	3708	+	4
	3709	+	5
	3710	+	6
	3711	+	7
	3712	+	8
	3713	+	9
	3714	+	10
	3715	+	11
	3716	+	12
	3717	+	13
	3718	+	14
	3719	+	15
	3720	+	16
	3721	+	17
	3722	+	18
	3723	+	19
	3724	+	20
	3725	+	21
	3726	+	22
	3727	+	23
	3728	+	24
	3729	+
2082	3730		4. In the case of a consolidation in which the resulting
2083	3731		corporation is a domestic corporation, that the certificate of
2084	3732		incorporation of the resulting corporation shall be as is set forth
2085	3733		in an attachment to the agreement;
2086		-
2087	3734		5. The manner, if any, of converting the shares of each of the
2088	3735		constituent corporations into shares or other securities of the
2089	3736		corporation surviving or resulting from the m erger or consolidation,
2090	3737		or of canceling some or all of the shares, and, if any shares of any
2091	3738		of the constituent corporations are not to remain outstanding, to be
2092	3739		converted solely into shares or other securities of the surviving or
2093	3740		resulting corporation or to be canceled, the cash, property, rights ,
2094	3741		or securities of any other corporation or entity which the holder of
2095	3742		the shares is to receive in exchange for, or upon conversion of, the
2096	3743		shares and the surrender of any certificates evidencing them, which
2097	3744		cash, property, rights, or securities of any other corporation or
2098	3745		entity may be in addition to or in lieu of the shares or other
2099	3746		securities of the surviving or resulting corporation;
2100		-
2101	3747		4. 6. Other details or provisions as are deemed desirable ,
2102	3748		including, without limiting the generality of the foregoing, a
2103	3749		provision for the payment of cash in lieu of the issuance or
2104	3750		recognition of fractional shares , rights or other securities of the
2105	3751		surviving or resulting corporation or of any other corporation or
2106	3752		entity, the shares, rights or other securities of which are to be
2107		-
2108		-	ENR. S. B. NO. 228 Page 49
2109	3753		received in the merger or consolidation, or for some other
	3754	+
	3755	+	SB228 HFLR Page 74
	3756	+	BOLD FACE denotes Committee Amendments. 1
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	3758	+	3
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	3762	+	7
	3763	+	8
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	3765	+	10
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	3767	+	12
	3768	+	13
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	3770	+	15
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	3772	+	17
	3773	+	18
	3774	+	19
	3775	+	20
	3776	+	21
	3777	+	22
	3778	+	23
	3779	+	24
	3780	+
2110	3781		arrangement with respect thereto consistent with the provisions of
2111	3782		Section 1036 of this title; and
2112		-
2113	3783		5. 7. Other provisions or facts as shall be requ ired to be set
2114	3784		forth in the certificate of incorporation by the laws of the state
2115	3785		which are stated in the agreement to be the laws that shall govern
2116	3786		the an agreement of merger or consolidation including any provision
2117	3787		for amendment of the certificate of inc orporation or equivalent
2118	3788		document of a surviving or resulting corporation and that can be
2119	3789		stated in the case of a merger or consolidation. Any of the terms
2120	3790		of the agreement of merger or consolidation may be made dependent
2121	3791		upon facts ascertainable outside of the agreement; provided, that
2122	3792		the manner in which the facts shall operate upon the terms of the
2123	3793		agreement is clearly and expressly set forth in the agreement of
2124	3794		merger or consolidation. The term “facts” as used in this
2125	3795		paragraph, includes, but is not l imited to, the occurrence of any
2126	3796		event, including a determination or action by any person or body ,
2127	3797		including the corporation.
2128		-
2129	3798		C. The agreement shall be adopted, approved, executed, and
2130	3799		acknowledged by each of the constituent corporations in accordance
2131	3800		with the laws under which it is formed organized, and, in the case
2132	3801		of an Oklahoma a domestic corporation, in the same manner as is
2133	3802		provided for in Section 1081 of this title. The agreement shall be
2134	3803		filed and shall become effective for all purposes of the law s of
2135	3804		this state when and as provided for in Section 1081 of this title
	3805	+
	3806	+	SB228 HFLR Page 75
	3807	+	BOLD FACE denotes Committee Amendments. 1
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	3809	+	3
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	3818	+	12
	3819	+	13
	3820	+	14
	3821	+	15
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	3824	+	18
	3825	+	19
	3826	+	20
	3827	+	21
	3828	+	22
	3829	+	23
	3830	+	24
	3831	+
2136	3832		with respect to the merger or consolidation of domestic corporations
2137	3833		of this state. In lieu of filing the agreement of merger or
2138	3834		consolidation, the surviving or resulting corporation m ay file a
2139	3835		certificate of merger or consolidation executed in accordance with
2140	3836		the provisions of Section 1007 of this title, which states:
2141		-
2142	3837		1. The name and state jurisdiction of incorporation
2143	3838		organization of each of the constituent corporations;
2144		-
2145	3839		2. That an agreement of merger or consolidation has been
2146	3840		approved, adopted, executed , and acknowledged by each of the
2147	3841		constituent corporations in accordance with the provisions of this
2148	3842		subsection;
2149		-
2150	3843		3. The name of the surviving or resulting corporation;
2151		-
2152		-	ENR. S. B. NO. 228 Page 50
2153		-
2154	3844		4. In the case of a merger in which the surviving corporation
2155	3845		is a domestic corporation , the amendments or changes in the
2156	3846		certificate of incorporation of the surviving corporation, which may
2157	3847		be amended and restated, that are effected by the merger, which
2158	3848		amendments or changes may amend and restate the certificate of
2159	3849		incorporation of the surviving corporation in its entirety, or, if
2160	3850		no amendments or changes are desired, a statement that the
2161	3851		certificate of incorporation of the surviving corporation shall be
2162	3852		its certificate of incorporation;
2163		-
2164	3853		5. In the case of a consolidation in which the resulting
2165	3854		corporation is a domestic corporation , that the certificate of
	3855	+
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	3857	+	BOLD FACE denotes Committee Amendments. 1
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	3880	+	24
	3881	+
2166	3882		incorporation of the resulting corporation shall be as is set forth
2167	3883		in an attachment to the certificate;
2168		-
2169	3884		6. That the executed agreement of consolidation or merger is on
2170	3885		file at the principal place of business of the surviving or
2171	3886		resulting corporation, and the address thereof;
2172		-
2173	3887		7. That a copy of the agreement of consolidation or merger will
2174	3888		be furnished by the survivin g or resulting corporation, on request
2175	3889		and without cost, to any shareholder of any constituent corporation;
2176		-
2177	3890		8. If the corporation surviving or resulting from the merger or
2178	3891		consolidation is to be a domestic corporation, the authorized
2179	3892		capital stock of each constituent corporation which is not a
2180	3893		domestic corporation; and
2181		-
2182	3894		9. The agreement, if any, required by the provisions of
2183	3895		subsection D of this section. For purposes of Section 1085 of this
2184	3896		title, the term “shareholder” in subsection D of this section sha ll
2185	3897		be deemed to include “member”.
2186		-
2187	3898		D. If the corporation surviving or resulting from the merger or
2188	3899		consolidation is to be governed by the laws of the District of
2189	3900		Columbia or any state other than this state a foreign corporation ,
2190	3901		it shall agree that it may be served with process in this state in
2191	3902		any proceeding for enforcement of any obligation of any constituent
2192	3903		corporation of this state, as well as for enforcement of any
2193	3904		obligation of the surviving or resulting corporation arising from
2194	3905		the merger or consoli dation, including any suit or other proceeding
2195	3906
2196		-	ENR. S. B. NO. 228 Page 51
	3907	+	SB228 HFLR Page 77
	3908	+	BOLD FACE denotes Committee Amendments. 1
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	3932	+
2197	3933		to enforce the right of any shareholders as determined in appraisal
2198	3934		proceedings pursuant to the provisions of Section 1091 of this
2199	3935		title, and shall irrevocably appoint the Secretary of State as its
2200	3936		agent to accept service of process in any suit or other proceedings
2201	3937		and shall specify the address to which a copy of process shall be
2202	3938		mailed by the Secretary of State. In the event of service upon the
2203	3939		Secretary of State in accordance with the provisions of Section 2 004
2204	3940		of Title 12 of the Oklahoma Statutes, the Secretary of State shall
2205	3941		immediately notify the surviving or resulting corporation thereof by
2206	3942		letter, certified mail, return receipt requested, directed to the
2207	3943		surviving or resulting corporation at the address specified unless
2208	3944		the surviving or resulting corporation shall have designated in
2209	3945		writing to the Secretary of State a different address for this
2210	3946		purpose, in which case it shall be mailed to the last address so
2211	3947		designated. The notice shall include a copy of the process and any
2212	3948		other papers served on the Secretary of State pursuant to the
2213	3949		provisions of this subsection. It shall be the duty of the
2214	3950		plaintiff in the event of such service to serve process and any
2215	3951		other papers in duplicate, to notify the Secretar y of State that
2216	3952		service is being effected pursuant to the provisions of this
2217	3953		subsection, and to pay the Secretary of State the fee provided for
2218	3954		in paragraph 7 of subsection A of Section 1142 of this title, which
2219	3955		fee shall be taxed as part of the costs in t he proceeding. The
2220	3956		Secretary of State shall maintain an alphabetical record of any such
	3957	+
	3958	+	SB228 HFLR Page 78
	3959	+	BOLD FACE denotes Committee Amendments. 1
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	3983	+
2221	3984		service setting forth the name of the plaintiff and the defendant,
2222	3985		the title, docket number , and nature of the proceeding in which
2223	3986		process has been served upon the Sec retary of State, the fact that
2224	3987		service has been effected pursuant to the provisions of this
2225	3988		subsection, the return date thereof, and the date service was made.
2226	3989		The Secretary of State shall not be required to retain such
2227	3990		information longer than five (5) ye ars from receipt of the service
2228	3991		of process by the Secretary of State.
2229		-
2230	3992		E. The provisions of subsection D of Section 1081 of this title
2231	3993		shall apply to any merger or consolidation pursuant to the
2232	3994		provisions of this section. The provisions of subsection E of
2233	3995		Section 1081 of this title shall apply to a merger pursuant to the
2234	3996		provisions of this section in which the surviving corporation is a
2235	3997		domestic corporation of this state. The provisions of subsections F
2236	3998		and H of Section 1081 of this title shall apply to a ny merger
2237	3999		pursuant to the provisions of this section.
2238		-
2239		-
2240		-	ENR. S. B. NO. 228 Page 52
2241	4000		SECTION 13. AMENDATORY Section 24, Chapter 323, O.S.L.
2242	4001		2017 (18 O.S. Supp. 2020, Section 1083.1), is amended to read as
2243	4002		follows:
2244		-
2245	4003		Section 1083.1.
2246		-
2247	4004		MERGER OF PARENT ENTITY AND SUBSIDIARY
2248		-
2249	4005		CORPORATION OR CORPORATIONS
2250		-
2251	4006		A. In any case in which:
	4007	+
	4008	+	SB228 HFLR Page 79
	4009	+	BOLD FACE denotes Committee Amendments. 1
	4010	+	2
	4011	+	3
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	4014	+	6
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	4031	+	23
	4032	+	24
2252	4033
2253	4034		1. At least ninety percent (90%) of the outstanding shares of
2254	4035		each class of the stock of a corporation or corporations, other
2255	4036		than a corporation which has in its certificate of incorporation
2256	4037		the provision required by division (1) of subparagraph g of
2257	4038		paragraph 1 of subsection G of Section 1081 of Title 18 of the
2258	4039		Oklahoma Statutes this title, of which class there are outstanding
2259	4040		shares that, absent this subsection, would be entitled to vote on
2260	4041		such merger, is owned by an entity; and
2261		-
2262	4042		2. One or more of such corporations is a domestic
2263	4043		corporation of this state; and
2264		-
2265	4044		3. Any entity or corporation that is not an entity or
2266	4045		corporation of this state is an entity or corporation of any
2267	4046		other state or the District of Columbia, the laws of which do not
2268	4047		forbid such merger. Unless the laws of the jurisdiction or
2269	4048		jurisdictions under which such entity or such foreign corporations
2270	4049		are formed or organized prohibit such merger , the entity having such
2271	4050		stock ownership may either merge the corporation or corporations
2272	4051		into itself and assume all of its or their obligations, or merge
2273	4052		itself, or itself and one or more of such corporations, into one
2274	4053		of the other corporations by:
2275		-
2276	4054		a. authorizing such merger in accordance with such
2277	4055		entity’s governing documents and the laws of the
2278	4056		jurisdiction under which such entity is formed or
2279	4057		organized, and
2280	4058
	4059	+	SB228 HFLR Page 80
	4060	+	BOLD FACE denotes Committee Amendments. 1
	4061	+	2
	4062	+	3
	4063	+	4
	4064	+	5
	4065	+	6
	4066	+	7
	4067	+	8
	4068	+	9
	4069	+	10
	4070	+	11
	4071	+	12
	4072	+	13
	4073	+	14
	4074	+	15
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	4077	+	18
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	4079	+	20
	4080	+	21
	4081	+	22
	4082	+	23
	4083	+	24
	4084	+
2281	4085		b. acknowledging and filing with the Secretary of
2282	4086		State, in accordance with Section 1007 of Title 18
2283		-
2284		-	ENR. S. B. NO. 228 Page 53
2285	4087		of the Oklahoma Statutes this title, a certificate of
2286	4088		such ownership and merger certifying:
2287		-
2288	4089		(1) that such merger was authorized in accordance
2289	4090		with such entity’s governing documents and the
2290	4091		laws of the jurisdiction under which such
2291	4092		entity is formed or organized, such certificate
2292	4093		executed in accordance with such entity’s
2293	4094		governing documents and in accordance with the
2294	4095		laws of the jurisdiction under which such
2295	4096		entity is formed or organized, and
2296		-
2297	4097		(2) the type of entity of each constituent entity
2298	4098		to the merger; provided, however, that in case
2299	4099		the entity shall not own all the outstanding
2300	4100		stock of all the corporations, parties to a
2301	4101		merger as aforesaid:
2302		-
2303	4102		(a) the certificate of ownership and merger
2304	4103		shall state the terms and conditions of
2305	4104		the merger, including the securities,
2306	4105		cash, property, or rights to be issued,
2307	4106		paid, delivered or granted by the
2308	4107		surviving constituent party upon
2309	4108		surrender of each share of the
	4109	+
	4110	+	SB228 HFLR Page 81
	4111	+	BOLD FACE denotes Committee Amendments. 1
	4112	+	2
	4113	+	3
	4114	+	4
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	4119	+	9
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	4127	+	17
	4128	+	18
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	4130	+	20
	4131	+	21
	4132	+	22
	4133	+	23
	4134	+	24
	4135	+
2310	4136		corporation or corporations not owned by
2311	4137		the entity, or the cancellation of some or
2312	4138		all of such shares, and
2313		-
2314	4139		(b) such terms and conditions of the merger
2315	4140		may not result in a holder of stock in a
2316	4141		corporation becoming a general partner in
2317	4142		a surviving entity that is a partnership,
2318	4143		other than a limited liability partnership
2319	4144		or a limited liability limited
2320	4145		partnership.
2321		-
2322	4146		Any of the terms of the merger may be ma de dependent upon facts
2323	4147		ascertainable outside of the certificate of ownership and merger,
2324	4148		provided that the manner in which such facts shall operate upon the
2325	4149		terms of the merger is clearly and expressly set forth in the
2326	4150		certificate of ownership and merger. The term “facts”, as used in
2327		-
2328		-	ENR. S. B. NO. 228 Page 54
2329	4151		the preceding sentence , includes, but is not limited to, the
2330	4152		occurrence of any event including a determination or action by any
2331	4153		person or body, including the entity. If the surviving constituent
2332	4154		party exists under the laws o f the District of Columbia or any state
2333	4155		or is an entity formed or organized under the laws of a jurisdiction
2334	4156		other than this state, subsection D of Section 1082 of Title 18 of
2335	4157		the Oklahoma Statutes this title shall also apply to a merger under
2336	4158		this section; if the surviving constituent party is the entity, the
2337	4159		word “corporation” where applicable, as used in subsection D of
	4160	+
	4161	+	SB228 HFLR Page 82
	4162	+	BOLD FACE denotes Committee Amendments. 1
	4163	+	2
	4164	+	3
	4165	+	4
	4166	+	5
	4167	+	6
	4168	+	7
	4169	+	8
	4170	+	9
	4171	+	10
	4172	+	11
	4173	+	12
	4174	+	13
	4175	+	14
	4176	+	15
	4177	+	16
	4178	+	17
	4179	+	18
	4180	+	19
	4181	+	20
	4182	+	21
	4183	+	22
	4184	+	23
	4185	+	24
	4186	+
2338	4187		Section 1082 of Title 18 of the Oklahoma Statutes this title, shall
2339	4188		be deemed to include an entity as defined herein; and the terms and
2340	4189		conditions of the merger shall obligate the surviving constituent
2341	4190		party to provide the agreement, and take the actions required by
2342	4191		subsection D of Section 1082 of Title 18 of the Oklahoma Statutes
2343	4192		this title.
2344		-
2345	4193		B. Sections 1088, 1090 and 1127 of Title 18 of the Oklahoma
2346	4194		Statutes this title shall, insofar as they are applicable, apply to
2347	4195		a merger under this section, and Section 1089 and subsection E of
2348	4196		Section 1081 of Title 18 of the Oklahoma Statutes this title shall
2349	4197		apply to a merger under this section in w hich the surviving
2350	4198		constituent party is a corporation of this state. For purposes of
2351	4199		this subsection, references to “agreement of merger” in subsection F
2352	4200		of Section 1081 of Title 18 of the Oklahoma Statutes this title
2353	4201		shall mean the terms and condition of the merger set forth in the
2354	4202		certificate of ownership and merger, and references to “corporation”
2355	4203		in Sections 1088, 1089 , and 1090 of Title 18 of the Oklahoma
2356	4204		Statutes this title and Section 1127 of Title 18 of the Oklahoma
2357	4205		Statutes this title shall be deemed to include the entity, as
2358	4206		applicable. Section 1091 of Title 18 of the Oklahoma Statutes this
2359	4207		title shall not apply to any merger effected under this section,
2360	4208		except as provided in subsection C of this section.
2361		-
2362	4209		C. In the event all of the stock of an Oklahoma a domestic
2363	4210		corporation party to a merger effected under this section is not
	4211	+
	4212	+	SB228 HFLR Page 83
	4213	+	BOLD FACE denotes Committee Amendments. 1
	4214	+	2
	4215	+	3
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	4217	+	5
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	4219	+	7
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	4232	+	20
	4233	+	21
	4234	+	22
	4235	+	23
	4236	+	24
	4237	+
2364	4238		owned by the entity immediately prior to the merger, the
2365	4239		shareholders of such Oklahoma domestic corporation party to the
2366	4240		merger shall have appraisal rights as set forth in Section 1091 of
2367	4241		Title 18 of the Oklahoma Statutes this title.
2368		-
2369	4242		D. A merger may be effected under this section although one or
2370	4243		more of the constituent parties is a corporation organized under
2371		-
2372		-	ENR. S. B. NO. 228 Page 55
2373	4244		the laws of a jurisdiction other than one of the United States,
2374	4245		provided that the laws of such jurisdiction do not forbid such
2375	4246		merger.
2376		-
2377	4247		E. As used in this section only, the term:
2378		-
2379	4248		1. “Constituent party” means an entity or corporation to be
2380	4249		merged pursuant to this section;
2381		-
2382	4250		2. “Entity” means a partnership, whether general or limited,
2383	4251		and including a limited liability partnership and a limited
2384	4252		liability limited partnership, a limited liability company, and
2385	4253		any unincorporated nonprofit or for-profit association, trust or
2386	4254		enterprise having members or having outstanding shares of stock
2387	4255		or other evidences of financial, beneficial or membership
2388	4256		interest therein, whether formed by agreement or under statutory
2389	4257		authority or otherwise and whether formed or organized under the
2390	4258		laws of this state or the laws of any other jurisdiction ; and
2391		-
2392	4259		3. “Governing documents” means a partnership agreement,
2393	4260		operating agreement, articles of association or any other
	4261	+
	4262	+	SB228 HFLR Page 84
	4263	+	BOLD FACE denotes Committee Amendments. 1
	4264	+	2
	4265	+	3
	4266	+	4
	4267	+	5
	4268	+	6
	4269	+	7
	4270	+	8
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	4275	+	13
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	4279	+	17
	4280	+	18
	4281	+	19
	4282	+	20
	4283	+	21
	4284	+	22
	4285	+	23
	4286	+	24
	4287	+
2394	4288		instrument containing the provisions by which an entity is
2395	4289		formed or organized.
2396		-
2397	4290		SECTION 14. AMENDATORY 18 O.S. 2011, Section 1090.3, as
2398	4291		amended by Section 25, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
2399	4292		Section 1090.3), is amended to read as follows:
2400		-
2401	4293		Section 1090.3.
2402		-
2403	4294		BUSINESS COMBINATIONS WITH INTERESTED SHAREHOLDERS
2404		-
2405	4295		A. Notwithstanding any other provisions of thi s title, a
2406	4296		corporation shall not engage in any business combination with any
2407	4297		interested shareholder for a period of three (3) years following the
2408	4298		time that the person became an interested shareholder, unless:
2409		-
2410	4299		1. Prior to that time, the board of directors of the
2411	4300		corporation approved either the business combination or the
2412	4301		transaction which resulted in the person becoming an interested
2413	4302		shareholder;
2414		-
2415		-
2416		-	ENR. S. B. NO. 228 Page 56
2417	4303		2. Upon consummation of the transaction which resulted in the
2418	4304		person becoming an interested shareholder, the in terested
2419	4305		shareholder owned at least eighty -five percent (85%) of the
2420	4306		outstanding voting stock of the corporation at the time the
2421	4307		transaction commenced, excluding for purposes of determining the
2422	4308		outstanding voting stock, but not the outstanding voting stock owned
2423	4309		by the interested shareholder, those shares owned by:
2424		-
2425	4310		a. persons who are directors and also officers, and
	4311	+
	4312	+	SB228 HFLR Page 85
	4313	+	BOLD FACE denotes Committee Amendments. 1
	4314	+	2
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	4325	+	13
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	4330	+	18
	4331	+	19
	4332	+	20
	4333	+	21
	4334	+	22
	4335	+	23
	4336	+	24
2426	4337
2427	4338		b. employee stock plans in which employee participants do
2428	4339		not have the right to determine confidentially whether
2429	4340		shares held subject to the pla n will be tendered in a
2430	4341		tender or exchange offer; or
2431		-
2432	4342		3. At or subsequent to such time, the business combination is
2433	4343		approved by the board of directors and authorized at an annual or
2434	4344		special meeting of shareholders, and not by written consent, by the
2435	4345		affirmative vote of at least two -thirds (2/3) of the outstanding
2436	4346		voting stock which is not owned by the interested shareholder.
2437		-
2438	4347		B. The restrictions contained in this section shall not apply
2439	4348		if:
2440		-
2441	4349		1. The corporation’s original certificate of incorporation
2442	4350		contains a provision expressly electing not to be governed by this
2443	4351		section;
2444		-
2445	4352		2. The corporation, by action of its board of directors,
2446	4353		adopted an amendment to its bylaws by November 30, 1991, expressly
2447	4354		electing not to be governed by this section, which amendment s hall
2448	4355		not be further amended by the board of directors;
2449		-
2450	4356		3. a. The corporation, with the approval of its shareholders,
2451	4357		adopts an amendment to its certificate of incorporation
2452	4358		or bylaws expressly electing not to be governed by this
2453	4359		section; provided that, in addition to any other vote
2454	4360		required by law, an amendment to the certificate of
2455	4361		incorporation or bylaws must be approved adopted by the
	4362	+
	4363	+	SB228 HFLR Page 86
	4364	+	BOLD FACE denotes Committee Amendments. 1
	4365	+	2
	4366	+	3
	4367	+	4
	4368	+	5
	4369	+	6
	4370	+	7
	4371	+	8
	4372	+	9
	4373	+	10
	4374	+	11
	4375	+	12
	4376	+	13
	4377	+	14
	4378	+	15
	4379	+	16
	4380	+	17
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	4388	+
2456	4389		affirmative vote of a majority of the outstanding
2457	4390		voting stock of the corporation.
2458		-
2459		-
2460		-	ENR. S. B. NO. 228 Page 57
2461	4391		b. An amendment adopted pursuant to t his paragraph shall
2462	4392		be effective immediately in In the case of a
2463	4393		corporation that both:
2464		-
2465	4394		(1) has never had a class of voting stock that falls
2466	4395		within any of the three two categories set out in
2467	4396		paragraph 4 of this subsection, and
2468		-
2469	4397		(2) has not elected by a prov ision in its original
2470	4398		certificate of incorporation or any amendment
2471	4399		thereto to be governed by this section , such
2472	4400		amendment shall become effective upon (i) in the
2473	4401		case of an amendment to the certificate of
2474	4402		incorporation, the date and time at which the
2475	4403		certificate filed in accordance with Section 1007
2476	4404		of this title becomes effective, or (ii) in the
2477	4405		case of an amendment to the bylaws, the date of
2478	4406		the adoption of such amendment .
2479		-
2480	4407		c. In all other cases, an amendment adopted pursuant to
2481	4408		this paragraph shall not be become effective until (i)
2482	4409		in the case of an amendment to the certificate of
2483	4410		incorporation, twelve (12) months after the adoption
2484	4411		of the amendment and date and time at which the
2485	4412		certificate filed in accordance with Section 1007 of
	4413	+
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	4415	+	BOLD FACE denotes Committee Amendments. 1
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	4439	+
2486	4440		this title becomes effec tive, or (ii) in the case of
2487	4441		an amendment to the bylaws, twelve (12) months after
2488	4442		the date of the adoption of such amendment, and in
2489	4443		either case, the election not to be governed by this
2490	4444		section shall not apply to any business combination
2491	4445		between a corporation and any person who became an
2492	4446		interested shareholder of the corporation on or prior
2493	4447		to the adoption before (i) in the case of an amendment
2494	4448		to the certificate of incorporation, the date and time
2495	4449		at which the certificate filed in accordance with
2496	4450		Section 1007 of this title becomes effective, or (ii)
2497	4451		in the case of an amendment to the bylaws, the date of
2498	4452		the adoption of such amendment . A bylaw amendment
2499	4453		adopted pursuant to this paragraph shall not be
2500	4454		further amended by the board of directors;
2501		-
2502		-
2503		-	ENR. S. B. NO. 228 Page 58
2504	4455		4. The corporation does not have a class of voting stock that
2505	4456		is:
2506		-
2507	4457		a. listed on a national securities exchange, or
2508		-
2509	4458		b. held of record by one thousand or more shareholders,
2510	4459		unless any of the foregoing results from action taken,
2511	4460		directly or indirectly, by an interested sha reholder
2512	4461		or from a transaction in which a person becomes an
2513	4462		interested shareholder;
2514	4463
	4464	+	SB228 HFLR Page 88
	4465	+	BOLD FACE denotes Committee Amendments. 1
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	4489	+
2515	4490		5. A person becomes an interested shareholder inadvertently
2516	4491		and:
2517		-
2518	4492		a. as soon as practicable divests itself of ownership of
2519	4493		sufficient shares so that the person ceases to be an
2520	4494		interested shareholder, and
2521		-
2522	4495		b. would not, at any time within the three -year period
2523	4496		immediately prior to a business combination between
2524	4497		the corporation and the person, have been an
2525	4498		interested shareholder but for the inadvertent
2526	4499		acquisition;
2527		-
2528	4500		6. a. The business combination is proposed prior to the
2529	4501		consummation or abandonment of, and subsequent to the
2530	4502		earlier of the public announcement or the notice
2531	4503		required hereunder of, a proposed transaction which:
2532		-
2533	4504		(1) constitutes one of the transactions described in
2534	4505		subparagraph b of this paragraph,
2535		-
2536	4506		(2) is with or by a person who:
2537		-
2538	4507		(a) was not an interested shareholder during the
2539	4508		previous three (3) years, or
2540		-
2541	4509		(b) became an interested shareholder with the
2542	4510		approval of the corporation ’s board of
2543	4511		directors or during the perio d described in
2544	4512		paragraph 7 of this subsection, and
2545	4513
2546		-
2547		-	ENR. S. B. NO. 228 Page 59
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	4539	+
2548	4540		(3) is approved or not opposed by a majority of the
2549	4541		members of the board of directors then in office,
2550	4542		but not less than one, who were directors prior
2551	4543		to any person becoming an interested shareholder
2552	4544		during the previous three (3) years or were
2553	4545		recommended for election or elected to succeed
2554	4546		the directors by a majority of the directors.
2555		-
2556	4547		b. The proposed transactions referred to in subparagraph
2557	4548		a of this paragraph are limited to:
2558		-
2559	4549		(1) a share acquisition pursuant to Section 1090.1 of
2560	4550		this title, or a merger or consolidation of the
2561	4551		corporation, except for a merger in respect of
2562	4552		which, pursuant to subsection F or G of Section
2563	4553		1081 of this title, no vote of the shareholders
2564	4554		of the corporation is required,
2565		-
2566	4555		(2) a sale, lease, exchange, mortgage, pledge,
2567	4556		transfer, or other disposition, in one
2568	4557		transaction or a series of transactions, whether
2569	4558		as part of a dissolution or otherwise, of assets
2570	4559		of the corporation or of any direct or indirect
2571	4560		majority-owned subsidiary of the co rporation,
2572	4561		other than to any direct or indirect wholly owned
2573	4562		subsidiary or to the corporation, having an
2574	4563		aggregate market value equal to fifty percent
	4564	+
	4565	+	SB228 HFLR Page 90
	4566	+	BOLD FACE denotes Committee Amendments. 1
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	4590	+
2575	4591		(50%) or more of either the aggregate market
2576	4592		value of all of the assets of the corporation
2577	4593		determined on a consolidated basis or the
2578	4594		aggregate market value of all the outstanding
2579	4595		stock of the corporation, or
2580		-
2581	4596		(3) a proposed tender or exchange offer for
2582	4597		outstanding stock of the corporation which
2583	4598		represents fifty percent (50%) or more of the
2584	4599		outstanding voting s tock of the corporation. The
2585	4600		corporation shall give not less than twenty (20)
2586	4601		days’ notice to all interested shareholders prior
2587	4602		to the consummation of any of the transactions
2588	4603		described in divisions (1) or (2) of this
2589	4604		subparagraph; or
2590		-
2591		-	ENR. S. B. NO. 228 Page 60
2592		-
2593	4605		7. The business comb ination is with an interested shareholder
2594	4606		who became an interested shareholder at a time when the restriction
2595	4607		contained in this section did not apply by reason of any of
2596	4608		paragraphs 1 through 4 of this subsection; provided, however, that
2597	4609		this paragraph shall not apply if, at the time the interested
2598	4610		shareholder became an interested shareholder, the corporation ’s
2599	4611		certificate of incorporation contained a provision authorized by
2600	4612		subsection C of this section.
2601		-
2602	4613		C. Notwithstanding paragraphs 1, 2, 3 and 4 of subsec tion B of
2603	4614		this section, a corporation may elect by a provision of its original
	4615	+
	4616	+	SB228 HFLR Page 91
	4617	+	BOLD FACE denotes Committee Amendments. 1
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	4640	+	24
	4641	+
2604	4642		certificate of incorporation or any amendment thereto to be governed
2605	4643		by this section; provided, that any amendment to the certificate of
2606	4644		incorporation shall not apply to restric t a business combination
2607	4645		between the corporation and an interested shareholder of the
2608	4646		corporation if the interested shareholder became an interested
2609	4647		shareholder prior to the effective date of the amendment before the
2610	4648		date and time at which the certificate filed in accordance with
2611	4649		Section 1007 of this title becomes effective .
2612		-
2613	4650		D. As used in this section:
2614		-
2615	4651		1. “Affiliate” means a person that directly, or indirectly
2616	4652		through one or more intermediaries, controls, or is controlled by,
2617	4653		or is under common control wi th, another person;
2618		-
2619	4654		2. “Associate”, when used to indicate a relationship with any
2620	4655		person, means:
2621		-
2622	4656		a. any corporation, partnership, unincorporated
2623	4657		association, or other entity of which the person is a
2624	4658		director, officer, or partner or is the owner of
2625	4659		twenty percent (20%) or more of any class of voting
2626	4660		stock,
2627		-
2628	4661		b. any trust or other estate in which the person has at
2629	4662		least a twenty-percent beneficial interest or as to
2630	4663		which such person serves as trustee or in a similar
2631	4664		fiduciary capacity, and
2632	4665
2633		-
2634		-	ENR. S. B. NO. 228 Page 61
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	4691	+
2635	4692		c. any relative or spouse of the person, or any relative
2636	4693		of the spouse, who has the same residence as the
2637	4694		person;
2638		-
2639	4695		3. “Business combination ”, when used in reference to any
2640	4696		corporation and any interested shareholder of the corporation,
2641	4697		means:
2642		-
2643	4698		a. any merger or consolidation of the corporation or any
2644	4699		direct or indirect majority -owned subsidiary of the
2645	4700		corporation with:
2646		-
2647	4701		(1) the interested shareholder, or
2648		-
2649	4702		(2) any other corporation, partnership,
2650	4703		unincorporated association, or other entity if
2651	4704		the merger or consolidation is caused by the
2652	4705		interested shareholder and, as a result of the
2653	4706		merger or consolidation subsection A of this
2654	4707		section is not applicable to the surviving
2655	4708		entity,
2656		-
2657	4709		b. any sale, lease, exchange, mortgage, pledge, transfer,
2658	4710		or other disposition, in one transaction or a serie s
2659	4711		of transactions, except proportionately as a
2660	4712		shareholder of the corporation, to or with the
2661	4713		interested shareholder, whether as part of a
2662	4714		dissolution or otherwise, of assets of the corporation
2663	4715		or of any direct or indirect majority -owned subsidiary
	4716	+
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	4742	+
2664	4743		of the corporation which assets have an aggregate
2665	4744		market value equal to ten percent (10%) or more of
2666	4745		either the aggregate market value of all the assets of
2667	4746		the corporation determined on a consolidated basis or
2668	4747		the aggregate market value of all the outstanding
2669	4748		stock of the corporation,
2670		-
2671	4749		c. any transaction which results in the issuance or
2672	4750		transfer by the corporation or by any direct or
2673	4751		indirect majority-owned subsidiary of the corporation
2674	4752		of any stock of the corporation or of the subsidiary
2675	4753		to the interested sharehol der, except:
2676		-
2677		-
2678		-	ENR. S. B. NO. 228 Page 62
2679	4754		(1) pursuant to the exercise, exchange, or conversion
2680	4755		of securities exercisable for, exchangeable for,
2681	4756		or convertible into stock of the corporation or
2682	4757		any subsidiary which securities were outstanding
2683	4758		prior to the time that the interested share holder
2684	4759		became an interested shareholder,
2685		-
2686	4760		(2) pursuant to a merger under subsection G of
2687	4761		Section 1081 of this title,
2688		-
2689	4762		(3) pursuant to a dividend or distribution paid or
2690	4763		made, or the exercise, exchange, or conversion of
2691	4764		securities exercisable for, exchangeabl e for, or
2692	4765		convertible into stock of the corporation or any
2693	4766		subsidiary which security is distributed, pro
	4767	+
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	4793	+
2694	4794		rata, to all holders of a class or series of
2695	4795		stock of the corporation subsequent to the time
2696	4796		the interested shareholder became an interested
2697	4797		shareholder,
2698		-
2699	4798		(4) pursuant to an exchange offer by the corporation
2700	4799		to purchase stock made on the same terms to all
2701	4800		holders of the stock, or
2702		-
2703	4801		(5) any issuance or transfer of stock by the
2704	4802		corporation; provided, however, that in no case
2705	4803		under divisions (3) through (5) of this
2706	4804		subparagraph shall there be an increase in the
2707	4805		interested shareholder ’s proportionate share of
2708	4806		the stock of any class or series of the
2709	4807		corporation or of the voting stock of the
2710	4808		corporation,
2711		-
2712	4809		d. any transaction involving the corporation or any
2713	4810		direct or indirect majority-owned subsidiary of the
2714	4811		corporation which has the effect, directly or
2715	4812		indirectly, of increasing the proportionate share of
2716	4813		the stock of any class or series, or securities
2717	4814		convertible into the stock of any class or series, or
2718	4815		the outstanding voting stock, of the corporation or of
2719	4816		any subsidiary which is owned by the interested
2720	4817		shareholder, except as a result of immaterial changes
2721	4818
2722		-	ENR. S. B. NO. 228 Page 63
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	4839	+	20
	4840	+	21
	4841	+	22
	4842	+	23
	4843	+	24
	4844	+
2723	4845		due to fractional share adjustments or as a result of
2724	4846		any purchase or redemption of any shares of stock not
2725	4847		caused, directly or indirectly, by the interested
2726	4848		shareholder,
2727		-
2728	4849		e. any receipt by the interested shareholder of the
2729	4850		benefit, directly or indirectly, except
2730	4851		proportionately as a shareholder of the corporation,
2731	4852		of any loans, advances, guarantees, pledges, or ot her
2732	4853		financial benefits, other than those expressly
2733	4854		permitted in subparagraphs a through d of this
2734	4855		paragraph, provided by or through the corporation or
2735	4856		any direct or indirect majority -owned subsidiary, or
2736		-
2737	4857		f. any share acquisition by the interested sharehold er
2738	4858		from the corporation or any direct or indirect
2739	4859		majority-owned subsidiary of the corporation pursuant
2740	4860		to Section 1090.1 of this title;
2741		-
2742	4861		4. “Control”, including the terms “controlling”, “controlled
2743	4862		by” and “under common control with ”, means the possession , directly
2744	4863		or indirectly, of the power to direct or cause the direction of the
2745	4864		management and policies of a person, whether through the ownership
2746	4865		of voting stock, by contract, or otherwise. A person who is the
2747	4866		owner of twenty percent (20%) or more of the outstanding voting
2748	4867		stock of any corporation, partnership, unincorporated association or
2749	4868		other entity shall be presumed to have control of the entity, in the
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	4895	+
2750	4896		absence of proof by a preponderance of the evidence to the contrary.
2751	4897		Notwithstanding the foregoing , a presumption of control shall not
2752	4898		apply where the person holds stock, in good faith and not for the
2753	4899		purpose of circumventing this section, as an agent, bank, broker,
2754	4900		nominee, custodian, or trustee for one or more owners who do not
2755	4901		individually or as a g roup have control of the entity;
2756		-
2757	4902		5. a. “Interested shareholder ” means:
2758		-
2759	4903		(1) any person, other than the corporation and any
2760	4904		direct or indirect majority -owned subsidiary of
2761	4905		the corporation, that:
2762		-
2763		-
2764		-	ENR. S. B. NO. 228 Page 64
2765	4906		(a) is the owner of fifteen percent (15%) or
2766	4907		more of the outstanding voting stock of the
2767	4908		corporation, or
2768		-
2769	4909		(b) is an affiliate or associate of the
2770	4910		corporation and was the owner of fifteen
2771	4911		percent (15%) or more of the outstanding
2772	4912		voting stock of the corporation at any time
2773	4913		within the three-year period immediately
2774	4914		prior to the date on which it is sought to
2775	4915		be determined whether the person is an
2776	4916		interested shareholder, and
2777		-
2778	4917		(2) the affiliates and associates of the person.
2779		-
2780	4918		b. “Interested shareholder ” shall not mean:
2781		-
2782	4919		(1) any person who:
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	4932	+	11
	4933	+	12
	4934	+	13
	4935	+	14
	4936	+	15
	4937	+	16
	4938	+	17
	4939	+	18
	4940	+	19
	4941	+	20
	4942	+	21
	4943	+	22
	4944	+	23
	4945	+	24
2783	4946
2784	4947		(a) owned shares in excess of the fifte en
2785	4948		percent (15%) limitation set forth herein as
2786	4949		of, or acquired such shares pursuant to a
2787	4950		tender offer commenced prior to, September
2788	4951		1, 1991, or pursuant to an exchange offer
2789	4952		announced prior to September 1, 1991, and
2790	4953		commenced within ninety (90) days there after
2791	4954		and either:
2792		-
2793	4955		i. continued to own shares in excess of
2794	4956		the fifteen percent (15%) limitation or
2795	4957		would have but for action by the
2796	4958		corporation, or
2797		-
2798	4959		ii. is an affiliate or associate of the
2799	4960		corporation and so continued, or so
2800	4961		would have continued but for acti on by
2801	4962		the corporation, to be the owner of
2802	4963		fifteen percent (15%) or more of the
2803	4964		outstanding voting stock of the
2804	4965		corporation at any time within the
2805	4966		three-year period immediately prior to
2806	4967		the date on which it is sought to be
2807		-
2808		-	ENR. S. B. NO. 228 Page 65
2809	4968		determined whether the person is a n
2810	4969		interested shareholder, or
	4970	+
	4971	+	SB228 HFLR Page 98
	4972	+	BOLD FACE denotes Committee Amendments. 1
	4973	+	2
	4974	+	3
	4975	+	4
	4976	+	5
	4977	+	6
	4978	+	7
	4979	+	8
	4980	+	9
	4981	+	10
	4982	+	11
	4983	+	12
	4984	+	13
	4985	+	14
	4986	+	15
	4987	+	16
	4988	+	17
	4989	+	18
	4990	+	19
	4991	+	20
	4992	+	21
	4993	+	22
	4994	+	23
	4995	+	24
2811	4996
2812	4997		(b) acquired the shares from a person described
2813	4998		in subdivision (a) of this division by gift,
2814	4999		inheritance, or in a transaction in which no
2815	5000		consideration was exchanged, or
2816		-
2817	5001		(2) any person whose ownership of shares in excess of
2818	5002		the fifteen percent (15%) limitation set forth
2819	5003		herein is the result of action taken solely by
2820	5004		the corporation; provided, that the person shall
2821	5005		be an interested shareholder if thereafter the
2822	5006		person acquires additional shares of voting stock
2823	5007		of the corporation, except as a result of further
2824	5008		corporate action not caused, directly or
2825	5009		indirectly, by the person.
2826		-
2827	5010		c. For the purpose of determining whether a person is an
2828	5011		interested shareholder, the stock of the corporation
2829	5012		deemed to be outstanding shall include stock de emed to
2830	5013		be owned by the person through application of
2831	5014		paragraph 9 of this subsection, but shall not include
2832	5015		any other unissued stock of the corporation which may
2833	5016		be issuable pursuant to any agreement, arrangement, or
2834	5017		understanding, or upon exercise of conv ersion rights,
2835	5018		warrants, or options, or otherwise;
2836	5019
	5020	+	SB228 HFLR Page 99
	5021	+	BOLD FACE denotes Committee Amendments. 1
	5022	+	2
	5023	+	3
	5024	+	4
	5025	+	5
	5026	+	6
	5027	+	7
	5028	+	8
	5029	+	9
	5030	+	10
	5031	+	11
	5032	+	12
	5033	+	13
	5034	+	14
	5035	+	15
	5036	+	16
	5037	+	17
	5038	+	18
	5039	+	19
	5040	+	20
	5041	+	21
	5042	+	22
	5043	+	23
	5044	+	24
	5045	+
2837	5046		6. “Person” means any individual, corporation, partnership,
2838	5047		unincorporated association, any other entity, any group and any
2839	5048		member of a group;
2840		-
2841	5049		7. “Stock” means, with respect to any corporation, capital
2842	5050		stock and, with respect to any other entity, any equity interest;
2843		-
2844	5051		8. “Voting stock” means, with respect to any corporation, stock
2845	5052		of any class or series entitled to vote generally in the election of
2846	5053		directors and, with respect to any entity that is not a c orporation,
2847	5054		any equity interest entitled to vote generally in the election of
2848	5055		the governing body of the entity. Every reference to a percentage
2849	5056		of voting stock refers to the percentage of the votes of the voting
2850	5057		stock; and
2851		-
2852		-	ENR. S. B. NO. 228 Page 66
2853		-
2854	5058		9. “Owner”, including the terms “own” and “owned”, when used
2855	5059		with respect to any stock, means a person who individually or with
2856	5060		or through any of its affiliates or associates:
2857		-
2858	5061		a. beneficially owns the stock, directly or indirectly,
2859	5062		or
2860		-
2861	5063		b. has:
2862		-
2863	5064		(1) the right to acquire the stock, whether the right
2864	5065		is exercisable immediately or only after the
2865	5066		passage of time, pursuant to any agreement,
2866	5067		arrangement, or understanding, or upon the
2867	5068		exercise of conversion rights, exchange rights,
2868	5069		warrants, or options, or otherwise; provided,
	5070	+
	5071	+	SB228 HFLR Page 100
	5072	+	BOLD FACE denotes Committee Amendments. 1
	5073	+	2
	5074	+	3
	5075	+	4
	5076	+	5
	5077	+	6
	5078	+	7
	5079	+	8
	5080	+	9
	5081	+	10
	5082	+	11
	5083	+	12
	5084	+	13
	5085	+	14
	5086	+	15
	5087	+	16
	5088	+	17
	5089	+	18
	5090	+	19
	5091	+	20
	5092	+	21
	5093	+	22
	5094	+	23
	5095	+	24
	5096	+
2869	5097		however, that a pers on shall not be deemed the
2870	5098		owner of stock tendered pursuant to a tender or
2871	5099		exchange offer made by the person or any of the
2872	5100		person’s affiliates or associates until the
2873	5101		tendered stock is accepted for purchase or
2874	5102		exchange, or
2875		-
2876	5103		(2) the right to vote the stock p ursuant to any
2877	5104		agreement, arrangement , or understanding;
2878	5105		provided, however, that a person shall not be
2879	5106		deemed the owner of any stock because of the
2880	5107		person’s right to vote the stock if the
2881	5108		agreement, arrangement , or understanding to vote
2882	5109		the stock arises solely from a revocable proxy or
2883	5110		consent given in response to a proxy or consent
2884	5111		solicitation made to ten or more persons, or
2885		-
2886	5112		c. has any agreement, arrangement , or understanding for
2887	5113		the purpose of acquiring, holding , or voting, except
2888	5114		voting pursuant to a re vocable proxy or consent as
2889	5115		described in division (2) of subparagraph b of this
2890	5116		paragraph, or disposing of the stock with any other
2891	5117		person that beneficially owns, or whose affiliates or
2892	5118		associates beneficially own, directly or indirectly,
2893	5119		the stock.
2894	5120
2895		-
2896		-	ENR. S. B. NO. 228 Page 67
	5121	+	SB228 HFLR Page 101
	5122	+	BOLD FACE denotes Committee Amendments. 1
	5123	+	2
	5124	+	3
	5125	+	4
	5126	+	5
	5127	+	6
	5128	+	7
	5129	+	8
	5130	+	9
	5131	+	10
	5132	+	11
	5133	+	12
	5134	+	13
	5135	+	14
	5136	+	15
	5137	+	16
	5138	+	17
	5139	+	18
	5140	+	19
	5141	+	20
	5142	+	21
	5143	+	22
	5144	+	23
	5145	+	24
	5146	+
2897	5147		E. No provisions of a certificate of incorporation or bylaw
2898	5148		shall require, for any vote of shareholders required by this
2899	5149		section, a greater vote of shareholders than that specified in this
2900	5150		section.
2901		-
2902	5151		SECTION 15. AMENDATORY 18 O.S. 2011, S ection 1090.4, as
2903	5152		amended by Section 23, Chapter 88, O.S.L. 2019 (18 O.S. Supp. 2020,
2904	5153		Section 1090.4), is amended to read as follows:
2905		-
2906	5154		Section 1090.4.
2907		-
2908	5155		CONVERSION OF AN ENTITY TO A DOMESTIC CORPORATION
2909		-
2910	5156		A. As used in this section, the term “entity” means a domestic
2911	5157		or foreign partnership, whether general or limited , and including a
2912	5158		limited liability partnership and a limited liability limited
2913	5159		partnership, a foreign corporation including a public benefit
2914	5160		corporation, a domestic or foreign limited liability com pany,
2915	5161		including a public benefit limited liability company, and any
2916	5162		unincorporated nonprofit or for -profit association, trust or
2917	5163		enterprise having members or having outstanding shares of stock or
2918	5164		other evidences of financial, beneficial or membership inter est
2919	5165		therein, whether formed by agreement or under statutory authority or
2920	5166		otherwise and whether formed or organized under the laws of this
2921	5167		state or the laws of any other jurisdiction.
2922		-
2923	5168		B. Any entity may convert to a domestic corporation by
2924	5169		complying with subsection G of this section and filing in the office
2925	5170		of the Secretary of State a certificate of conversion that has been
	5171	+
	5172	+	SB228 HFLR Page 102
	5173	+	BOLD FACE denotes Committee Amendments. 1
	5174	+	2
	5175	+	3
	5176	+	4
	5177	+	5
	5178	+	6
	5179	+	7
	5180	+	8
	5181	+	9
	5182	+	10
	5183	+	11
	5184	+	12
	5185	+	13
	5186	+	14
	5187	+	15
	5188	+	16
	5189	+	17
	5190	+	18
	5191	+	19
	5192	+	20
	5193	+	21
	5194	+	22
	5195	+	23
	5196	+	24
	5197	+
2926	5198		executed in accordance with subsection H of this section and filed
2927	5199		in accordance with Section 1007 of this title, to which shall be
2928	5200		attached, a certificate of incorporation that has been prepared,
2929	5201		executed and acknowledged in accordance with Section 1007 of this
2930	5202		title. Each of the certificates required by this subsection shall
2931	5203		be filed simultaneously in the office of the Secretary of Stat e.
2932		-
2933	5204		C. The certificate of conversion to a corporation shall state:
2934		-
2935	5205		1. The date on which the entity was first formed;
2936		-
2937	5206		2. The name, jurisdiction of formation or organization, and
2938	5207		type of entity of the entity when formed and, if changed, its name,
2939		-
2940		-	ENR. S. B. NO. 228 Page 68
2941	5208		jurisdiction and type of entity immediately before the filing of the
2942	5209		certificate of conversion;
2943		-
2944	5210		3. The name of the corporation as set forth in its certificate
2945	5211		of incorporation filed in accordance with subsection B of this
2946	5212		section; and
2947		-
2948	5213		4. The future effective date or time, which shall be a date or
2949	5214		time certain not later than ninety (90) days after the filing, of
2950	5215		the conversion to a corporation if the conversion is not to be
2951	5216		effective upon the filing of the certificate of conversion and the
2952	5217		certificate of incorporat ion provides for the same future effective
2953	5218		date as authorized in subsection D of Section 1007 of this title.
2954		-
2955	5219		D. Upon the effective date or time of the certificate of
2956	5220		conversion and the certificate of incorporation, the entity shall be
2957	5221		converted to a domes tic corporation and the corporation shall
	5222	+
	5223	+	SB228 HFLR Page 103
	5224	+	BOLD FACE denotes Committee Amendments. 1
	5225	+	2
	5226	+	3
	5227	+	4
	5228	+	5
	5229	+	6
	5230	+	7
	5231	+	8
	5232	+	9
	5233	+	10
	5234	+	11
	5235	+	12
	5236	+	13
	5237	+	14
	5238	+	15
	5239	+	16
	5240	+	17
	5241	+	18
	5242	+	19
	5243	+	20
	5244	+	21
	5245	+	22
	5246	+	23
	5247	+	24
	5248	+
2958	5249		thereafter be subject to all of the provisions of this title, except
2959	5250		that notwithstanding Section 1007 of this title, the existence of
2960	5251		the corporation shall be deemed to have commenced on the date the
2961	5252		entity commenced its existence.
2962		-
2963	5253		E. The conversion of any entity to a domestic corporation shall
2964	5254		not be deemed to affect any obligations or liabilities of the entity
2965	5255		incurred before its conversion to a domestic corporation or the
2966	5256		personal liability of any person incurr ed before such conversion.
2967		-
2968	5257		F. When an entity has converted to a domestic corporation under
2969	5258		this section, the domestic corporation shall be deemed to be the
2970	5259		same entity as the converting entity. All of the rights, privileges
2971	5260		and powers of the entity that has converted, and all property, real,
2972	5261		personal and mixed, and all debts due to the entity, as well as all
2973	5262		other things and causes of action belonging to the entity, shall
2974	5263		remain vested in the domestic corporation to which the entity has
2975	5264		converted and shall be the property of the domestic corporation and
2976	5265		the title to any real property vested by deed or otherwise in the
2977	5266		entity shall not revert or be in any way impaired by reason of the
2978	5267		conversion; but all rights of creditors and all liens upon any
2979	5268		property of the entity shall be preserved unimpaired, and all debts,
2980	5269		liabilities and duties of the entity that has converted shall remain
2981	5270		attached to the domestic corporation to which the entity has
2982	5271		converted, and may be enforced against it to the same extent as if
2983		-
2984		-	ENR. S. B. NO. 228 Page 69
2985	5272		said the debts, liabilities and duties had originally been incurred
	5273	+
	5274	+	SB228 HFLR Page 104
	5275	+	BOLD FACE denotes Committee Amendments. 1
	5276	+	2
	5277	+	3
	5278	+	4
	5279	+	5
	5280	+	6
	5281	+	7
	5282	+	8
	5283	+	9
	5284	+	10
	5285	+	11
	5286	+	12
	5287	+	13
	5288	+	14
	5289	+	15
	5290	+	16
	5291	+	17
	5292	+	18
	5293	+	19
	5294	+	20
	5295	+	21
	5296	+	22
	5297	+	23
	5298	+	24
	5299	+
2986	5300		or contracted by it in its capacity as a domestic corporation. The
2987	5301		rights, privileges, powers and interests in property of the entity,
2988	5302		as well as the debts, liabilities and duties of the entity, shall
2989	5303		not be deemed, as a consequence of the conversion, to have been
2990	5304		transferred to the domestic corporation to which the entity has
2991	5305		converted for any purpose of the laws of this state.
2992		-
2993	5306		G. Unless otherwise agreed or otherwise provided by any laws of
2994	5307		this state applicable to the converting entity, the converting
2995	5308		entity shall not be required to wind up its affairs or pay its
2996	5309		liabilities and distribute its assets, and the conversion shall not
2997	5310		be deemed to constitute a dissolution of such entity and s hall
2998	5311		constitute a continuation of the existence of the converting entity
2999	5312		in the form of a domestic corporation.
3000		-
3001	5313		H. Before filing a certificate of conversion with the Secretary
3002	5314		of State, the conversion shall be approved in the manner provided
3003	5315		for by the document, instrument, agreement or other writing, as the
3004	5316		case may be, governing the internal affairs of the entity and the
3005	5317		conduct of its business or by applicable law, as appropriate, and a
3006	5318		certificate of incorporation shall be approved by the same
3007	5319		authorization required to approve the conversion.
3008		-
3009	5320		I. The certificate of conversion to a corporation shall be
3010	5321		signed by an officer, director, trustee, manager, partner , or other
3011	5322		person performing functions equivalent to those of an officer or
3012	5323		director of a domesti c corporation, however named or described, and
	5324	+
	5325	+	SB228 HFLR Page 105
	5326	+	BOLD FACE denotes Committee Amendments. 1
	5327	+	2
	5328	+	3
	5329	+	4
	5330	+	5
	5331	+	6
	5332	+	7
	5333	+	8
	5334	+	9
	5335	+	10
	5336	+	11
	5337	+	12
	5338	+	13
	5339	+	14
	5340	+	15
	5341	+	16
	5342	+	17
	5343	+	18
	5344	+	19
	5345	+	20
	5346	+	21
	5347	+	22
	5348	+	23
	5349	+	24
	5350	+
3013	5351		who is authorized to sign the certificate of conversion on behalf of
3014	5352		the entity.
3015		-
3016	5353		J. In a conversion of an entity to a domestic corporation under
3017	5354		this section, rights or securities of, or memberships or member ship,
3018	5355		economic or ownership interests in, the entity which is to be
3019	5356		converted to a domestic corporation may be exchanged for or
3020	5357		converted into cash, property , or shares of stock, rights or
3021	5358		securities of the domestic corporation or, in addition to or in lie u
3022	5359		thereof, may be exchanged for or converted into cash, property , or
3023	5360		shares of stock, rights or securities of or interests in another
3024	5361		domestic corporation or entity or may be canceled.
3025		-
3026		-
3027		-	ENR. S. B. NO. 228 Page 70
3028	5362		SECTION 16. AMENDATORY 18 O.S. 2011, Section 1 090.5, as
3029	5363		amended by Section 24, Chapter 88, O.S.L. 2019 (18 O.S. Supp. 2020,
3030	5364		Section 1090.5), is amended to read as follows:
3031		-
3032	5365		Section 1090.5.
3033		-
3034	5366		CONVERSION OF DOMESTIC CORPORATION TO AN ENTITY
3035		-
3036	5367		A. A domestic corporation may, upon the authorization of such
3037	5368		conversion in accordance with this section, convert to an entity.
3038	5369		As used in this section, the term “entity” means a domestic or
3039	5370		foreign partnership, whether general or limited, and including a
3040	5371		limited liability partnership and a limited liability limited
3041	5372		partnership, a foreign corporation including a public benefit
3042	5373		corporation, a domestic or foreign limited liability company
3043	5374		including a public benefit limited liability company , and any
	5375	+
	5376	+	SB228 HFLR Page 106
	5377	+	BOLD FACE denotes Committee Amendments. 1
	5378	+	2
	5379	+	3
	5380	+	4
	5381	+	5
	5382	+	6
	5383	+	7
	5384	+	8
	5385	+	9
	5386	+	10
	5387	+	11
	5388	+	12
	5389	+	13
	5390	+	14
	5391	+	15
	5392	+	16
	5393	+	17
	5394	+	18
	5395	+	19
	5396	+	20
	5397	+	21
	5398	+	22
	5399	+	23
	5400	+	24
	5401	+
3044	5402		unincorporated nonprofit or for -profit association, trust or
3045	5403		enterprise having members or having outstanding shares of stock or
3046	5404		other evidences of financial, beneficial or membership interest
3047	5405		therein, whether formed by agreement or under statutory authority or
3048	5406		otherwise and whether formed or organized under the laws of this
3049	5407		state or the laws of any other jurisdiction.
3050		-
3051	5408		B. The board of directors of the corporation which desires to
3052	5409		convert under this section shall adopt a resolution approving such
3053	5410		conversion, specifying the type of entity into which the corporation
3054	5411		shall be converted and recommending the approval of the conversion
3055	5412		by the shareholders of the corporation. The resolution shall be
3056	5413		submitted to the shareholders of the corporation at an annual or
3057	5414		special meeting. Due notice of the time, and purpose of the meeting
3058	5415		shall be mailed to each holder of shares, whether voting or
3059	5416		nonvoting, of the corporation at the address of the shareholder as
3060	5417		it appears on the records of the corporation, at least twenty (20)
3061	5418		days prior to the date of the meeting. At the meeting, the
3062	5419		resolution shall be considered and a vote taken for its adoption or
3063	5420		rejection. The corporation adopts the conversion if all outstanding
3064	5421		shares of stock of the corporation, whether voting or nonvoting, are
3065	5422		voted for the resolution.
3066		-
3067	5423		C. If the governing act of the domestic entity to which the
3068	5424		corporation is converting does not provide for the filing of a
3069	5425		conversion notice with the Secretary of State or the corporation is
3070	5426
3071		-	ENR. S. B. NO. 228 Page 71
	5427	+	SB228 HFLR Page 107
	5428	+	BOLD FACE denotes Committee Amendments. 1
	5429	+	2
	5430	+	3
	5431	+	4
	5432	+	5
	5433	+	6
	5434	+	7
	5435	+	8
	5436	+	9
	5437	+	10
	5438	+	11
	5439	+	12
	5440	+	13
	5441	+	14
	5442	+	15
	5443	+	16
	5444	+	17
	5445	+	18
	5446	+	19
	5447	+	20
	5448	+	21
	5449	+	22
	5450	+	23
	5451	+	24
	5452	+
3072	5453		converting to a foreign entity, the corporation shall file with the
3073	5454		Secretary of State a certif icate of conversion executed in
3074	5455		accordance with Section 1007 of this title which certifies:
3075		-
3076	5456		1. The name of the corporation and, if it has been changed, the
3077	5457		name under which it was originally incorporated;
3078		-
3079	5458		2. The date of filing of its original certificate of
3080	5459		incorporation with the Secretary of State;
3081		-
3082	5460		3. The name of the entity to which the corporation shall be
3083	5461		converted, its jurisdiction of formation if a foreign entity, and
3084	5462		the type of entity;
3085		-
3086	5463		4. That the conversion has been approved in accordance with t he
3087	5464		provisions of this section;
3088		-
3089	5465		5. The future effective date or time of the conversion to an
3090	5466		entity, which shall be a date or time certain not later than ninety
3091	5467		(90) days after the filing, if it is not to be effective upon the
3092	5468		filing of the certificate of conversion;
3093		-
3094	5469		6. The agreement of the foreign entity that it may be served
3095	5470		with process in this state in any action, suit or proceeding for
3096	5471		enforcement of any obligation of the foreign entity arising while it
3097	5472		was a domestic corporation and that it irrevocab ly appoints the
3098	5473		Secretary of State as its agent to accept service of process in any
3099	5474		such action, suit or proceeding;
3100		-
3101	5475		7. The address to which a copy of the process referred to in
3102	5476		this subsection shall be mailed by the Secretary of State. In the
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	5503	+
3103	5504		event of such service upon the Secretary of State in accordance with
3104	5505		the provisions of Section 2004 of Title 12 of the Oklahoma Statutes,
3105	5506		the Secretary of State shall immediately notify such corporation
3106	5507		that has converted out of the State of Oklahoma by letter, cert ified
3107	5508		mail, return receipt requested, directed to the corporation at the
3108	5509		address specified unless the corporation shall have designated in
3109	5510		writing to the Secretary of State a different address for this
3110	5511		purpose, in which case it shall be mailed to the last address so
3111	5512		designated. The notice shall include a copy of the process and any
3112	5513		other papers served on the Secretary of State pursuant to the
3113	5514		provisions of this subsection. It shall be the duty of the
3114		-
3115		-	ENR. S. B. NO. 228 Page 72
3116	5515		plaintiff in the event of such service to serve process and any
3117	5516		other papers in duplicate, to notify the Secretary of State that
3118	5517		service is being effected pursuant to the provisions of this
3119	5518		subsection, and to pay the Secretary of State the fee provided for
3120	5519		in paragraph 7 of Section 1142 of this title, which fe e shall be
3121	5520		taxed as part of the costs in the proceeding. The Secretary of
3122	5521		State shall maintain an alphabetical record of any such service
3123	5522		setting forth the name of the plaintiff and the defendant, the
3124	5523		title, docket number, and nature of the proceeding in which process
3125	5524		has been served upon the Secretary of State, the fact that service
3126	5525		has been effected pursuant to the provisions of this subsection, the
3127	5526		return date thereof, and the date service was made. The Secretary
3128	5527		of State shall not be required to retai n such information longer
	5528	+
	5529	+	SB228 HFLR Page 109
	5530	+	BOLD FACE denotes Committee Amendments. 1
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	5554	+
3129	5555		than five (5) years from receipt of the service of process by the
3130	5556		Secretary of State; and
3131		-
3132	5557		8. If the entity to which the corporation is converting was
3133	5558		required to make a filing with the Secretary of State as a condition
3134	5559		of its formation, the type and date of such filing.
3135		-
3136	5560		D. Upon the filing of a conversion notice with the Secretary of
3137	5561		State, whether under subsection C of this section or under the
3138	5562		governing act of the domestic entity to which the corporation is
3139	5563		converting, the filin g of any formation document required by the
3140	5564		governing act of the domestic entity to which the corporation is
3141	5565		converting, and payment to the Secretary of State of all prescribed
3142	5566		fees, the Secretary of State shall certify that the corporation has
3143	5567		filed all documents and paid all required fees, and thereupon the
3144	5568		corporation shall cease to exist as a domestic corporation at the
3145	5569		time the certificate of conversion becomes effective in accordance
3146	5570		with Section 1007 of this title. The certificate of the Secretary
3147	5571		of State shall be prima facie evidence of the conversion by the
3148	5572		corporation.
3149		-
3150	5573		E. The conversion of a corporation under this section and the
3151	5574		resulting cessation of its existence as a domestic corporation shall
3152	5575		not be deemed to affect any obligations or liabi lities of the
3153	5576		corporation incurred before such conversion or the personal
3154	5577		liability of any person incurred before the conversion, nor shall it
	5578	+
	5579	+	SB228 HFLR Page 110
	5580	+	BOLD FACE denotes Committee Amendments. 1
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	5604	+
3155	5605		be deemed to affect the choice of law applicable to the corporation
3156	5606		with respect to matters arising before the co nversion.
3157		-
3158		-
3159		-	ENR. S. B. NO. 228 Page 73
3160	5607		F. Unless otherwise provided in a resolution of conversion
3161	5608		adopted in accordance with this section, the converting corporation
3162	5609		shall not be required to wind up its affairs or pay its liabilities
3163	5610		and distribute its assets, and the conversion shal l not constitute a
3164	5611		dissolution of such corporation.
3165		-
3166	5612		G. In a conversion of a domestic corporation to an entity under
3167	5613		this section, shares of stock of the converting domestic corporation
3168	5614		may be exchanged for or converted into cash, property, rights or
3169	5615		securities of, or memberships or membership, economic or ownership
3170	5616		interests in, the entity to which the domestic corporation is being
3171	5617		converted or, in addition to or in lieu thereof, may be exchanged
3172	5618		for or converted into cash, property, shares of stock, right s or
3173	5619		securities of, or interests in, another corporation or entity or may
3174	5620		be canceled.
3175		-
3176	5621		H. When a corporation has converted to an entity under this
3177	5622		section, the entity shall be deemed to be the same entity as the
3178	5623		corporation. All of the rights, privileges and powers of the
3179	5624		corporation that has converted, and all property, real, personal and
3180	5625		mixed, and all debts due to the corporation, as well as all other
3181	5626		things and causes of action belonging to the corporation, shall
3182	5627		remain vested in the entity to which t he corporation has converted
3183	5628		and shall be the property of the entity, and the title to any real
	5629	+
	5630	+	SB228 HFLR Page 111
	5631	+	BOLD FACE denotes Committee Amendments. 1
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	5655	+
3184	5656		property vested by deed or otherwise in the corporation shall not
3185	5657		revert or be in any way impaired by reason of the conversion; but
3186	5658		all rights of creditors and all liens upon any property of the
3187	5659		corporation shall be preserved unimpaired, and all debts,
3188	5660		liabilities and duties of the corporation that has converted shall
3189	5661		remain attached to the entity to which the corporation has
3190	5662		converted, and may be enforced agains t it to the same extent as if
3191	5663		said the debts, liabilities and duties had originally been incurred
3192	5664		or contracted by it in its capacity as the entity. The rights,
3193	5665		privileges, powers and interest in property of the corporation that
3194	5666		has converted, as well as the debts, liabilities and duties of the
3195	5667		corporation, shall not be deemed, as a consequence of the
3196	5668		conversion, to have been transferred to the entity to which the
3197	5669		corporation has converted for any purpose of the laws of this state.
3198		-
3199	5670		I. No vote of sharehold ers of a corporation shall be necessary
3200	5671		to authorize a conversion if no shares of the stock of the
3201		-
3202		-	ENR. S. B. NO. 228 Page 74
3203	5672		corporation shall have been issued before the adoption by the board
3204	5673		of directors of the resolution approving the conversion.
3205		-
3206	5674		J. Nothing in this section shal l be deemed to authorize the
3207	5675		conversion of a charitable nonstock corporation into another entity,
3208	5676		if the charitable status of such charitable nonstock corporation
3209	5677		would thereby be lost or impaired.
3210	5678
	5679	+	SB228 HFLR Page 112
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	5704	+
3211	5705		SECTION 17. AMENDATORY 18 O.S. 20 11, Section 1091, as
3212	5706		amended by Section 26, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
3213	5707		Section 1091), is amended to read as follows:
3214		-
3215	5708		Section 1091.
3216		-
3217	5709		APPRAISAL RIGHTS
3218		-
3219	5710		A. Any shareholder of a corporation of this state who holds
3220	5711		shares of stock on the date of the making of a demand pursuant to
3221	5712		the provisions of subsection D of this section with respect to the
3222	5713		shares, who continuously holds the shares through the effective date
3223	5714		of the merger or consolidation, who has otherwise complied with the
3224	5715		provisions of subsection D of this section and who has neither voted
3225	5716		in favor of the merger or consolidation nor consented thereto in
3226	5717		writing pursuant to the provisions of Section 1073 of this title
3227	5718		shall be entitled to an appraisal by the district court of the fair
3228	5719		value of the shares of stock under the circumstances described in
3229	5720		subsections B and C of this section. As used in this section, the
3230	5721		word “shareholder” means a holder of record of stock in a stock
3231	5722		corporation; the words “stock” and “share” mean and include what is
3232	5723		ordinarily meant by those words; and “depository receipt” means an
3233	5724		instrument issued by a depository representing an interest in one or
3234	5725		more shares, or fractions thereof, solely of stock of a corporation,
3235	5726		which stock is deposited with the depository.
3236		-
3237	5727		B. 1. Except as otherwise provided for in this subsection,
3238	5728		appraisal rights shall be available for the shares of any class or
	5729	+
	5730	+	SB228 HFLR Page 113
	5731	+	BOLD FACE denotes Committee Amendments. 1
	5732	+	2
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	5753	+	23
	5754	+	24
	5755	+
3239	5756		series of stock of a constituent corporation in a merger or
3240	5757		consolidation, or of the acquired corporation in a share
3241	5758		acquisition, to be effected pursuant to the provisions of Section
3242	5759		1081 of this title, other than a merger effected pursuant to
3243	5760		subsection G of Section 1081 of this title, or, subject to paragraph
3244	5761		3 of this subsection, subsection H of Section 1081, and the
3245		-
3246		-	ENR. S. B. NO. 228 Page 75
3247	5762		provisions of Section 1082, 1084, 1085, 1086, 1087, 1090.1 or 1090.2
3248	5763		of this title.
3249		-
3250	5764		2. a. No appraisal rights under this section shall be
3251	5765		available for the shares of any class or series of
3252	5766		stock which stock, or depository receipts in respect
3253	5767		thereof, at the record date fixed to determine the
3254	5768		shareholders entitled to receive notice of the
3255	5769		meeting of shareholders to act upon the agreement of
3256	5770		merger or consolidation, or, the case of a merger
3257	5771		pursuant to subsection H of Section 1081 of this
3258	5772		title, as of immediately befo re the execution of the
3259	5773		agreement of merger, were either:
3260		-
3261	5774		(1) listed on a national securities exchange; or
3262		-
3263	5775		(2) held of record by more than two thousand holders.
3264		-
3265	5776		No appraisal rights shall be available for any shares of stock
3266	5777		of the constituent corporation s urviving a merger if the merger did
3267	5778		not require for its approval the vote of the shareholders of the
	5779	+
	5780	+	SB228 HFLR Page 114
	5781	+	BOLD FACE denotes Committee Amendments. 1
	5782	+	2
	5783	+	3
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	5804	+	24
	5805	+
3268	5806		surviving corporation as provided in subsection G of Section 1081 of
3269	5807		this title.
3270		-
3271	5808		b. in In addition, no appraisal rights shall be available
3272	5809		for any shares of stock, or depository receipts in
3273	5810		respect thereof, of the constituent corporation
3274	5811		surviving a merger if the merger did not require for
3275	5812		its approval the vote of the shareholders of the
3276	5813		surviving corporation as provided for in subsection F
3277	5814		of Section 1081 of this title.
3278		-
3279	5815		3. Notwithstanding the provisions of paragraph 2 of this
3280	5816		subsection, appraisal rights provided for in this section shall be
3281	5817		available for the shares of any class or series of stock of a
3282	5818		constituent corporation if the holders thereof are requ ired by the
3283	5819		terms of an agreement of merger or consolidation pursuant to the
3284	5820		provisions of Section 1081, 1082, 1084, 1085, 1086, 1087, 1090.1 or
3285	5821		1090.2 of this title to accept for the stock anything except:
3286		-
3287		-
3288		-	ENR. S. B. NO. 228 Page 76
3289	5822		a. shares of stock of the corporation surviving o r
3290	5823		resulting from the merger or consolidation or
3291	5824		depository receipts thereof, or
3292		-
3293	5825		b. shares of stock of any other corporation, or
3294	5826		depository receipts in respect thereof, which shares
3295	5827		of stock or depository receipts at the effective date
3296	5828		of the merger or cons olidation will be either listed
	5829	+
	5830	+	SB228 HFLR Page 115
	5831	+	BOLD FACE denotes Committee Amendments. 1
	5832	+	2
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	5839	+	9
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	5853	+	23
	5854	+	24
	5855	+
3297	5856		on a national securities exchange or held of record by
3298	5857		more than two thousand holders, or
3299		-
3300	5858		c. cash in lieu of fractional shares or fractional
3301	5859		depository receipts described in subparagraphs a and b
3302	5860		of this paragraph, or
3303		-
3304	5861		d. any combination of the shares of stock, depository
3305	5862		receipts, and cash in lieu of the fractional shares or
3306	5863		depository receipts described in subparagraphs a, b,
3307	5864		and c of this paragraph.
3308		-
3309	5865		4. In the event all of the stock of a subsidiary Oklahoma
3310	5866		corporation party to a merger effected pursuant to the provisions of
3311	5867		subsection H of Section 1081 or Section 1083 or 1083.1 of this title
3312	5868		is not owned by the parent corporation immediately prior to the
3313	5869		merger, appraisal rights shall be available for the shares of the
3314	5870		subsidiary Oklahoma corporation.
3315		-
3316	5871		C. Any corporation may provide in its certificate of
3317	5872		incorporation that appraisal rights under this section shall be
3318	5873		available for the shares of any class or series of its stock as a
3319	5874		result of an amendment to its certificate o f incorporation, any
3320	5875		merger or consolidation in which the corporation is a constituent
3321	5876		corporation or the sale of all or substantially all of the assets of
3322	5877		the corporation. If the certificate of incorporation contains such
3323	5878		a provision, the procedures of t his section, including those set
	5879	+
	5880	+	SB228 HFLR Page 116
	5881	+	BOLD FACE denotes Committee Amendments. 1
	5882	+	2
	5883	+	3
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	5887	+	7
	5888	+	8
	5889	+	9
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	5891	+	11
	5892	+	12
	5893	+	13
	5894	+	14
	5895	+	15
	5896	+	16
	5897	+	17
	5898	+	18
	5899	+	19
	5900	+	20
	5901	+	21
	5902	+	22
	5903	+	23
	5904	+	24
	5905	+
3324	5906		forth in subsections D and E of this section, shall apply as nearly
3325	5907		as is practicable.
3326		-
3327	5908		D. Appraisal rights shall be perfected as follows:
3328		-
3329	5909		1. If a proposed merger or consolidation for which appraisal
3330	5910		rights are provided un der this section is to be submitted for
3331		-
3332		-	ENR. S. B. NO. 228 Page 77
3333	5911		approval at a meeting of shareholders, the corporation, not less
3334	5912		than twenty (20) days prior to the meeting, shall notify each of its
3335	5913		shareholders who was such on the record date for notice of such
3336	5914		meeting, or such members who received notice in accordance with
3337	5915		subsection C of Section 1081 of this title, with respect to shares
3338	5916		for which appraisal rights are available pursuant to subsection B or
3339	5917		C of this section that appraisal rights are available for any or all
3340	5918		of the shares of the constituent corporations, and shall include in
3341	5919		the notice a copy of this section and, if one of the constituent
3342	5920		corporations is a nonstock corporation, a copy of Section 1004.1 of
3343	5921		this title. Each shareholder electing to demand the apprais al of
3344	5922		the shares of the shareholder shall deliver to the corporation,
3345	5923		before the taking of the vote on the merger or consolidation, a
3346	5924		written demand for appraisal of the shares of the shareholder. The
3347	5925		demand will be sufficient if it reasonably informs the corporation
3348	5926		of the identity of the shareholder and that the shareholder intends
3349	5927		thereby to demand the appraisal of the shares of the shareholder. A
3350	5928		proxy or vote against the merger or consolidation shall not
3351	5929		constitute such a demand. A shareholder elect ing to take such
	5930	+
	5931	+	SB228 HFLR Page 117
	5932	+	BOLD FACE denotes Committee Amendments. 1
	5933	+	2
	5934	+	3
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	5948	+	17
	5949	+	18
	5950	+	19
	5951	+	20
	5952	+	21
	5953	+	22
	5954	+	23
	5955	+	24
	5956	+
3352	5957		action must do so by a separate written demand as herein provided.
3353	5958		Within ten (10) days after the effective date of the merger or
3354	5959		consolidation, the surviving or resulting corporation shall notify
3355	5960		each shareholder of each constituent corp oration who has complied
3356	5961		with the provisions of this subsection and has not voted in favor of
3357	5962		or consented to the merger or consolidation as of the date that the
3358	5963		merger or consolidation has become effective; or
3359		-
3360	5964		2. If the merger or consolidation is approve d pursuant to the
3361	5965		provisions of Section 1073, subsection H of Section 1081, Section
3362	5966		1083 or Section 1083.1 of this title, either a constituent
3363	5967		corporation before the effective date of the merger or consolidation
3364	5968		or the surviving or resulting corporation wi thin ten (10) days
3365	5969		thereafter shall notify each of the holders of any class or series
3366	5970		of stock of the constituent corporation who are entitled to
3367	5971		appraisal rights of the approval of the merger or consolidation and
3368	5972		that appraisal rights are available for an y or all shares of such
3369	5973		class or series of stock of the constituent corporation, and shall
3370	5974		include in the notice a copy of this section and, if one of the
3371	5975		constituent corporations is a nonstock corporation, a copy of
3372	5976		Section 1004.1 of this title. The noti ce may, and, if given on or
3373	5977		after the effective date of the merger or consolidation, shall, also
3374	5978		notify the shareholders of the effective date of the merger or
3375		-
3376		-	ENR. S. B. NO. 228 Page 78
3377	5979		consolidation. Any shareholder entitled to appraisal rights may,
3378	5980		within twenty (20) days after the date of mailing of the notice or,
	5981	+
	5982	+	SB228 HFLR Page 118
	5983	+	BOLD FACE denotes Committee Amendments. 1
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3379	6008		in the case of a merger approved pursuant to subsection H of Section
3380	6009		1081 of this title, within the later of the consummation of an offer
3381	6010		contemplated by subsection H of Section 1081 of this title and
3382	6011		twenty (20) days after the date of mailing of such notice, demand in
3383	6012		writing from the surviving or resulting corporation the appraisal of
3384	6013		the holder’s shares. The demand will be sufficient if it reasonably
3385	6014		informs the corporation of the identity of the shareholder and tha t
3386	6015		the shareholder intends to demand the appraisal of the holder ’s
3387	6016		shares. If the notice does not notify shareholders of the effective
3388	6017		date of the merger or consolidation either:
3389		-
3390	6018		a. each constituent corporation shall send a second
3391	6019		notice before the effecti ve date of the merger or
3392	6020		consolidation notifying each of the holders of any
3393	6021		class or series of stock of the constituent
3394	6022		corporation that are entitled to appraisal rights of
3395	6023		the effective date of the merger or consolidation, or
3396		-
3397	6024		b. the surviving or resulting corporation shall send a
3398	6025		second notice to all holders on or within ten (10)
3399	6026		days after the effective date of the merger or
3400	6027		consolidation; provided, however, that if the second
3401	6028		notice is sent more than twenty (20) days following
3402	6029		the mailing of the first no tice or, in the case of a
3403	6030		merger approved pursuant to subsection H of Section
3404	6031		1081 of this title, later than the later of the
	6032	+
	6033	+	SB228 HFLR Page 119
	6034	+	BOLD FACE denotes Committee Amendments. 1
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	6058	+
3405	6059		consummation of the offer contemplated by subsection H
3406	6060		of Section 1081 of this title and twenty (20) days
3407	6061		following the sending of the first notice, the second
3408	6062		notice need only be sent to each shareholder who is
3409	6063		entitled to appraisal rights and who has demanded
3410	6064		appraisal of the holder ’s shares in accordance with
3411	6065		this subsection. An affidavit of the secretary or
3412	6066		assistant secretary o r of the transfer agent of the
3413	6067		corporation that is required to give either notice
3414	6068		that the notice has been given shall, in the absence
3415	6069		of fraud, be prima facie evidence of the facts stated
3416	6070		therein. For purposes of determining the shareholders
3417	6071		entitled to receive either notice, each constituent
3418	6072		corporation may fix, in advance, a record date that
3419		-
3420		-	ENR. S. B. NO. 228 Page 79
3421	6073		shall be not more than ten (10) days prior to the date
3422	6074		the notice is given; provided, if the notice is given
3423	6075		on or after the effective date of the merger or
3424	6076		consolidation, the record date shall be the effective
3425	6077		date. If no record date is fixed and the notice is
3426	6078		given prior to the effective date, the record date
3427	6079		shall be the close of business on the day next
3428	6080		preceding the day on which the notice is given.
3429		-
3430	6081		E. Within one hundred twenty (120) days after the effective
3431	6082		date of the merger or consolidation, the surviving or resulting
	6083	+
	6084	+	SB228 HFLR Page 120
	6085	+	BOLD FACE denotes Committee Amendments. 1
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	6109	+
3432	6110		corporation or any shareholder who has complied with the provisions
3433	6111		of subsections A and D of this section and who is otherwise entitled
3434	6112		to appraisal rights, may file a petition in district court demanding
3435	6113		a determination of the value of the stock of all such shareholders.
3436	6114		Notwithstanding the foregoing, at any time within sixty (60) days
3437	6115		after the effective date of the merger or consolidation, any
3438	6116		shareholder who has not commenced an appraisal proceeding or joined
3439	6117		that proceeding as a named party shall have the right to withdraw
3440	6118		the demand of the shareholder for appraisal and to accept the terms
3441	6119		offered upon the merger or consolidation. Within one hundred twenty
3442	6120		(120) days after the effective date of the merger or consolidation,
3443	6121		any shareholder who has complied with the requirements of
3444	6122		subsections A and D of this section, upon written request, shall be
3445	6123		entitled to receive from the corporation su rviving the merger or
3446	6124		resulting from the consolidation a statement setting forth the
3447	6125		aggregate number of shares not voted in favor of the merger or
3448	6126		consolidation and or, in the case of a merger approved pursuant to
3449	6127		subsection H of Section 1081 of this titl e, the aggregate number of
3450	6128		shares, other than any excluded stock as defined in subparagraph d
3451	6129		of paragraph 6 of subsection H of Section 1081 of this title, that
3452	6130		were the subject of, and were not tendered into, and accepted for
3453	6131		purchase or exchange in, the offer referred to in paragraph 2 of
3454	6132		subsection H of Section 1081 of this title and, in either case, with
3455	6133		respect to which demands for appraisal have been received and the
	6134	+
	6135	+	SB228 HFLR Page 121
	6136	+	BOLD FACE denotes Committee Amendments. 1
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	6160	+
3456	6161		aggregate number of holders of the shares. The written statement
3457	6162		shall be mailed to the shareholder within ten (10) days after the
3458	6163		shareholder’s written request for a statement is received by the
3459	6164		surviving or resulting corporation or within ten (10) days after
3460	6165		expiration of the period for delivery of demands for appraisal
3461	6166		pursuant to the provisions of subsection D of this section,
3462	6167		whichever is later. Notwithstanding subsection A of this section, a
3463		-
3464		-	ENR. S. B. NO. 228 Page 80
3465	6168		person who is the beneficial owner of shares of such stock held
3466	6169		either in a voting trust or by a nominee on behalf of such person
3467	6170		may, in such person’s own name, file a petition or request from the
3468	6171		corporation the statement described in this section.
3469		-
3470	6172		F. Upon the filing of any such petition by a shareholder,
3471	6173		service of a copy thereof shall be made upon the surviving or
3472	6174		resulting corporation, whic h, within twenty (20) days after service,
3473	6175		shall file, in the office of the court clerk of the district court
3474	6176		in which the petition was filed, a duly verified list containing the
3475	6177		names and addresses of all shareholders who have demanded payment
3476	6178		for their shares and with whom agreements regarding the value of
3477	6179		their shares have not been reached by the surviving or resulting
3478	6180		corporation. If the petition shall be filed by the surviving or
3479	6181		resulting corporation, the petition shall be accompanied by such
3480	6182		duly verified list. The court clerk, if so ordered by the court,
3481	6183		shall give notice of the time and place fixed for the hearing on the
3482	6184		petition by registered or certified mail to the surviving or
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	6186	+	SB228 HFLR Page 122
	6187	+	BOLD FACE denotes Committee Amendments. 1
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	6211	+
3483	6212		resulting corporation and to the shareholders shown on the list at
3484	6213		the addresses therein stated. Notice shall also be given by one or
3485	6214		more publications at least one (1) week before the day of the
3486	6215		hearing, in a newspaper of general circulation published in the City
3487	6216		of Oklahoma City, Oklahoma, or other publication as the co urt deems
3488	6217		advisable. The forms of the notices by mail and by publication
3489	6218		shall be approved by the court, and the costs thereof shall be borne
3490	6219		by the surviving or resulting corporation.
3491		-
3492	6220		G. At the hearing on the petition, the court shall determine
3493	6221		the shareholders who have complied with the provisions of this
3494	6222		section and who have become entitled to appraisal rights. The court
3495	6223		may require the shareholders who have demanded an appraisal of their
3496	6224		shares and who hold stock represented by certificates to submit
3497	6225		their certificates of stock to the court clerk for notation thereon
3498	6226		of the pendency of the appraisal proceedings; and if any shareholder
3499	6227		fails to comply with this direction, the court may dismiss the
3500	6228		proceedings as to that shareholder. If immediately bef ore the
3501	6229		merger or consolidation the shares of the class or series of stock
3502	6230		of the constituent corporation as to which appraisal rights are
3503	6231		available were listed on a national securities exchange, the court
3504	6232		shall dismiss the proceedings as to all holders of such shares who
3505	6233		are otherwise entitled to appraisal rights unless (1) the total
3506	6234		number of shares entitled to appraisal exceeds one percent (1%) of
3507		-
3508		-	ENR. S. B. NO. 228 Page 81
3509	6235		the outstanding shares of the class or series eligible for
	6236	+
	6237	+	SB228 HFLR Page 123
	6238	+	BOLD FACE denotes Committee Amendments. 1
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	6262	+
3510	6263		appraisal, (2) the value of the consideration pro vided in the merger
3511	6264		or consolidation for such total number of shares exceeds One Million
3512	6265		Dollars ($1,000,000.00), or (3) the merger was approved pursuant to
3513	6266		Section 1083 or Section 1083.1 of this title.
3514		-
3515	6267		H. After determining the shareholders entitled to an appraisal,
3516	6268		the court shall appraise the shares, determining their fair value
3517	6269		exclusive of any element of value arising from the accomplishment or
3518	6270		expectation of the merger or consolidation, together with interest,
3519	6271		if any, to be paid upon the amount determ ined to be the fair value.
3520	6272		In determining the fair value, the court shall take into account all
3521	6273		relevant factors. In determining the fair rate of interest, the
3522	6274		court may consider all relevant factors. Unless the court in its
3523	6275		discretion determines otherw ise for good cause shown, and except as
3524	6276		provided in this subsection, interest from the effective date of the
3525	6277		merger through the date of payment of the judgment shall be
3526	6278		compounded quarterly and shall accrue at five percent (5%) over the
3527	6279		Federal Reserve discount rate, including any surcharge, as
3528	6280		established from time to time during the period between the
3529	6281		effective date of the merger and the date of payment of judgment.
3530	6282		At any time before the entry of judgment in the proceedings, the
3531	6283		surviving corporation ma y pay to each shareholder entitled to
3532	6284		appraisal an amount in cash, in which case interest shall accrue
3533	6285		thereafter as provided herein only upon the sum of (1) the
3534	6286		difference, if any, between the amount so paid and the fair value of
	6287	+
	6288	+	SB228 HFLR Page 124
	6289	+	BOLD FACE denotes Committee Amendments. 1
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	6313	+
3535	6314		the shares as determined by the court, and (2) interest theretofore
3536	6315		accrued, unless paid at that time. Upon application by the
3537	6316		surviving or resulting corporation or by any shareholder entitled to
3538	6317		participate in the appraisal proceeding, the court may, in its
3539	6318		discretion, proceed t o trial upon the appraisal prior to the final
3540	6319		determination of the shareholder entitled to an appraisal. Any
3541	6320		shareholder whose name appears on the list filed by the surviving or
3542	6321		resulting corporation pursuant to the provisions of subsection F of
3543	6322		this section and who has submitted the certificates of stock of the
3544	6323		shareholder to the court clerk, if required, may participate fully
3545	6324		in all proceedings until it is finally determined that the
3546	6325		shareholder is not entitled to appraisal rights pursuant to the
3547	6326		provisions of this section.
3548		-
3549	6327		I. The court shall direct the payment of the fair value of the
3550	6328		shares, together with interest, if any, by the surviving or
3551		-
3552		-	ENR. S. B. NO. 228 Page 82
3553	6329		resulting corporation to the shareholders entitled thereto. Payment
3554	6330		shall be made to each shareholder, in the case of holders of
3555	6331		uncertificated stock immediately, and in the case of holders of
3556	6332		shares represented by certificates upon the surrender to the
3557	6333		corporation of the certificates representing the stock. The court ’s
3558	6334		decree may be enforced as other decrees in the district court may be
3559	6335		enforced, whether the surviving or resulting corporation be a
3560	6336		corporation of this state or of any other state.
3561	6337
	6338	+	SB228 HFLR Page 125
	6339	+	BOLD FACE denotes Committee Amendments. 1
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	6363	+
3562	6364		J. The costs of the proceeding may be determined by the court
3563	6365		and taxed upon the parties as the court deems equitable in the
3564	6366		circumstances. Upon application of a shareholder, the court may
3565	6367		order all or a portion of the expenses incurred by any shareholder
3566	6368		in connection with the appraisal proceeding , including, without
3567	6369		limitation, reasonable attorney ’s fees and the fees a nd expenses of
3568	6370		experts, to be charged pro rata against the value of all of the
3569	6371		shares entitled to an appraisal.
3570		-
3571	6372		K. From and after the effective date of the merger or
3572	6373		consolidation, no shareholder who has demanded appraisal rights as
3573	6374		provided for in subsec tion D of this section shall be entitled to
3574	6375		vote the stock for any purpose or to receive payment of dividends or
3575	6376		other distributions on the stock, except dividends or other
3576	6377		distributions payable to shareholders of record at a date which is
3577	6378		prior to the effective date of the merger or consolidation;
3578	6379		provided, however, that if no petition for an appraisal shall be
3579	6380		filed within the time provided for in subsection E of this section,
3580	6381		or if the shareholder shall deliver to the surviving or resulting
3581	6382		corporation a written withdrawal of the shareholder ’s demand for an
3582	6383		appraisal and an acceptance of the merger or consolidation, either
3583	6384		within sixty (60) days after the effective date of the merger or
3584	6385		consolidation as provided for in subsection E of this section or
3585	6386		thereafter with the written approval of the corporation, then the
3586	6387		right of the shareholder to an appraisal shall cease; provided
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	6389	+	SB228 HFLR Page 126
	6390	+	BOLD FACE denotes Committee Amendments. 1
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	6414	+
3587	6415		further, no appraisal proceeding in the district court shall be
3588	6416		dismissed as to any shareholder without the approval of the court,
3589	6417		and approval may be conditioned upon terms as the court deems just;
3590	6418		provided, however, that this provision shall not affect the right of
3591	6419		any shareholder who has not commenced an appraisal proceeding or
3592	6420		joined that proceeding as a named party to withdraw su ch
3593	6421		shareholder’s demand for appraisal and to accept the terms offered
3594	6422		upon the merger or consolidation within sixty (60) days after the
3595		-
3596		-	ENR. S. B. NO. 228 Page 83
3597	6423		effective date of the merger or consolidation, as set forth in
3598	6424		subsection E of this section.
3599		-
3600	6425		L. The shares of the survi ving or resulting corporation into
3601	6426		which the shares of any objecting shareholders would have been
3602	6427		converted had they assented to the merger or consolidation shall
3603	6428		have the status of authorized and unissued shares of the surviving
3604	6429		or resulting corporation.
3605		-
3606	6430		SECTION 18. AMENDATORY 18 O.S. 2011, Section 2001, as
3607	6431		amended by Section 37, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
3608	6432		Section 2001), is amended to read as follows:
3609		-
3610	6433		Section 2001.
3611		-
3612	6434		DEFINITIONS
3613		-
3614	6435		As used in the Oklahoma Limited Liab ility Company Act, unless
3615	6436		the context otherwise requires:
	6437	+
	6438	+	SB228 HFLR Page 127
	6439	+	BOLD FACE denotes Committee Amendments. 1
	6440	+	2
	6441	+	3
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	6450	+	12
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	6455	+	17
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3616	6463
3617	6464		1. “Articles of organization ” means documents filed for the
3618	6465		purpose of forming a limited liability company, and the articles as
3619	6466		amended;
3620		-
3621	6467		2. “Bankrupt” means bankrupt under the United States Bankru ptcy
3622	6468		Code, as amended, or insolvent under any state insolvency act;
3623		-
3624	6469		3. “Business” means any trade, occupation, profession or other
3625	6470		activity regardless of whether engaged in for gain, profit or
3626	6471		livelihood;
3627		-
3628	6472		4. “Capital contribution ” means anything of value that a person
3629	6473		contributes to the limited liability company as a prerequisite for,
3630	6474		or in connection with, membership , including cash, property,
3631	6475		services rendered, or a promissory note or other binding obligation
3632	6476		to contribute cash or property or to perform services;
3633		-
3634	6477		5. “Capital interest” means the fair market value as of the
3635	6478		date contributed of a member ’s capital contribution as adjusted for
3636	6479		any additional capital contributions or withdrawals, a person ’s
3637	6480		share of the profits and losses of a limited liabili ty company and a
3638		-
3639		-	ENR. S. B. NO. 228 Page 84
3640	6481		person’s right to receive distributions of the limited liability
3641	6482		company’s assets;
3642		-
3643	6483		6. “Corporation” means a corporation formed organized under the
3644	6484		laws of this state or a foreign corporation as defined in this
3645	6485		section the laws of any juri sdiction other than this state ;
3646		-
3647	6486		7. “Court” includes every court and judge having jurisdiction
3648	6487		in the case;
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	6489	+	SB228 HFLR Page 128
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	6510	+	21
	6511	+	22
	6512	+	23
	6513	+	24
3649	6514
3650	6515		8. “Foreign corporation” means a corporation formed organized
3651	6516		under the laws of any state jurisdiction other than this state , or
3652	6517		under the laws of the District of Columbia or any foreign country ;
3653		-
3654	6518		9. “Foreign limited liability company ” means:
3655		-
3656	6519		a. an unincorporated association,
3657		-
3658	6520		b. organized formed under the laws of a state any
3659	6521		jurisdiction other than the laws of this state or
3660	6522		organized under the laws o f any foreign country , and
3661		-
3662	6523		c. organized formed under a statute pursuant to which an
3663	6524		association may be formed that affords to each of its
3664	6525		members limited liability with respect to the
3665	6526		liabilities of the entity , and a limited liability
3666	6527		company formed under the laws of any state other than
3667	6528		this state, or under the laws of the District of
3668	6529		Columbia or any foreign country ;
3669		-
3670	6530		10. “Foreign limited partnership ” means a limited partnership
3671	6531		formed under the laws of any state jurisdiction other than this
3672	6532		state, or under the laws of the District of Columbia or any foreign
3673	6533		country;
3674		-
3675	6534		11. “Jurisdiction”, when used to refer to a political entity,
3676	6535		means the United States, a state, a tribal government, a foreign
3677	6536		country or a political subdivision of a foreign country;
3678	6537
	6538	+	SB228 HFLR Page 129
	6539	+	BOLD FACE denotes Committee Amendments. 1
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	6563	+
3679	6564		12. “Limited liability company ” or “domestic limited liability
3680	6565		company” means an entity formed under the Oklahoma Limited Liability
3681	6566		Company Act and existing under the laws of this state;
3682		-
3683		-	ENR. S. B. NO. 228 Page 85
3684		-
3685	6567		12. 13. “Limited partnership” means a limited partnership
3686	6568		formed under the laws of this state or a foreign limited partnership
3687	6569		as defined in this section;
3688		-
3689	6570		13. 14. “Manager” or “managers” means a person or persons
3690	6571		designated by the members of a limited liability company to manage
3691	6572		the limited liability company as provided in the a rticles of
3692	6573		organization or an operating agreement;
3693		-
3694	6574		14. 15. “Member” means a person with an ownership interest in a
3695	6575		limited liability company, with the rights and obligations specified
3696	6576		under this act the Oklahoma Limited Liability Company Act ;
3697		-
3698	6577		15. 16. “Membership interest” or “interest” means a member’s
3699	6578		rights in the limited liability company, collectively , including the
3700	6579		member’s share of the profits and losses of the limited liability
3701	6580		company, the right to receive distributions of the limited liability
3702	6581		company’s assets and capital interest, any right to vote or
3703	6582		participate in management , and such other rights accorded to members
3704	6583		under the articles of organization, operating agreement , or the
3705	6584		Oklahoma Limited Liability Company Act;
3706		-
3707	6585		16. 17. “Operating agreement”, regardless of whether referred
3708	6586		to as an operating agreement and whether oral, in a record, implied ,
3709	6587		or in any combination thereof, means any agreement of the members,
	6588	+
	6589	+	SB228 HFLR Page 130
	6590	+	BOLD FACE denotes Committee Amendments. 1
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	6614	+
3710	6615		including a sole member, as to the affairs of a limited liability
3711	6616		company and the conduct of its business , including the agreement as
3712	6617		amended or restated;
3713		-
3714	6618		17. 18. “Person” means an individual, a general partnership, a
3715	6619		limited partnership, a limited liability company, a trust, an
3716	6620		estate, an association, a corporation or any other legal or
3717	6621		commercial entity;
3718		-
3719	6622		18. 19. “State” means a state, territory or possession of the
3720	6623		United States, the District of Columbia , or the Commonwealth of
3721	6624		Puerto Rico; and
3722		-
3723	6625		19. 20. “Charitable entity” means any nonprofit limited
3724	6626		liability company or other entity that is exempt from taxation under
3725		-
3726		-	ENR. S. B. NO. 228 Page 86
3727	6627		Section 501(c)(3) of the United States Internal Revenue Code (26
3728	6628		U.S.C., Section 501(c)(3)), or any successor provisions.
3729		-
3730	6629		SECTION 19. AMENDATORY 18 O.S. 2011, Section 2010, is
3731	6630		amended to read as follows:
3732		-
3733	6631		Section 2010. A. Every domestic limited liability company
3734	6632		shall continuously maintain in this state:
3735		-
3736	6633		1. A registered office which may be, but need not be, the same
3737	6634		as its principal place of business; and
3738		-
3739	6635		2. A registered agent for service of pr ocess on the limited
3740	6636		liability company that may be the domestic limited liability company
3741	6637		itself, an individual resident of this state , or a domestic or
3742	6638		qualified foreign corporation, limited liability company , or general
	6639	+
	6640	+	SB228 HFLR Page 131
	6641	+	BOLD FACE denotes Committee Amendments. 1
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	6643	+	3
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	6665	+
3743	6666		or limited partnership including a limited liability partnership or
3744	6667		a limited liability limited partnership. Each registered agent
3745	6668		shall maintain a business office identical with the registered
3746	6669		office which is open during regular business hours to accept service
3747	6670		of process and otherwise p erform the functions of a registered
3748	6671		agent.
3749		-
3750	6672		B. 1. A limited liability company may designate or change its
3751	6673		registered agent, registered office , or principal office by filing
3752	6674		with the Office of the Secretary of State a statement authorizing
3753	6675		the designation or change and signed by any manager.
3754		-
3755	6676		2. A limited liability company may change the street address of
3756	6677		its registered office by filing with the Office of the Secretary of
3757	6678		State a statement of the change signed by any manager.
3758		-
3759	6679		3. A designation or change of a principal office or registered
3760	6680		agent or street address of the registered office for a limited
3761	6681		liability company under this subsection is effective when the Office
3762	6682		of the Secretary of State files the statement, unless a later
3763	6683		effective date or time, whic h shall be a specified date or time not
3764	6684		later than a time on the ninetieth day after the filing, is provided
3765	6685		in the statement.
3766		-
3767	6686		C. 1. A registered agent who changes his or her street address
3768	6687		in the state may notify the Office of the Secretary of State of the
3769		-
3770		-	ENR. S. B. NO. 228 Page 87
3771	6688		change by filing with the Office of the Secretary of State a
	6689	+
	6690	+	SB228 HFLR Page 132
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	6715	+
3772	6716		statement of the change signed by the agent or on the agent ’s
3773	6717		behalf.
3774		-
3775	6718		2. The statement shall include:
3776		-
3777	6719		a. the name of the limited liability company for which
3778	6720		the change is effective,
3779		-
3780	6721		b. the new street address of the registered agent, and
3781		-
3782	6722		c. the date on which the change is effective, if to be
3783	6723		effective after the filing date.
3784		-
3785	6724		3. If the new address of the registered agent is the same as
3786	6725		the new address of the principal office of the limited liab ility
3787	6726		company, the statement may include a change of address of the
3788	6727		principal office if:
3789		-
3790	6728		a. the registered agent notifies the limited liability
3791	6729		company of the change in writing, and
3792		-
3793	6730		b. the statement recites that the registered agent has
3794	6731		done so.
3795		-
3796	6732		4. The change of address of the registered agent or principal
3797	6733		office is effective when the Office of the Secretary of State files
3798	6734		the statement, unless a later effective date or time, which shall be
3799	6735		a specified date or time not later than a time on the ninetieth da y
3800	6736		after the filing, is provided in the statement.
3801		-
3802	6737		D. 1. A registered agent may resign by filing with the Office
3803	6738		of the Secretary of State a copy of the resignation, signed and
3804	6739		acknowledged by the registered agent, which contains a statement
	6740	+
	6741	+	SB228 HFLR Page 133
	6742	+	BOLD FACE denotes Committee Amendments. 1
	6743	+	2
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	6748	+	7
	6749	+	8
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	6752	+	11
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	6755	+	14
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	6759	+	18
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	6766	+
3805	6767		that notice of the resignation was given to the limited liability
3806	6768		company at least thirty (30) days before the filing of the
3807	6769		resignation by mailing or delivering the notice to the limited
3808	6770		liability company at its address last known to the registered agent
3809	6771		and specifying the address therein.
3810		-
3811	6772		2. The resignation is effective thirty (30) days after it is
3812	6773		filed, unless a later effective date or time, which shall be a
3813		-
3814		-	ENR. S. B. NO. 228 Page 88
3815	6774		specified date or time not later than a time on the ninetieth day
3816	6775		after the filing, is provided in the resig nation.
3817		-
3818	6776		3. If a domestic limited liability company fails to obtain and
3819	6777		designate a new registered agent before the resignation is
3820	6778		effective, the Secretary of State shall be deemed to be the
3821	6779		registered agent of the limited liability company until a new
3822	6780		registered agent is designated.
3823		-
3824	6781		E. If a limited liability company has no registered agent or
3825	6782		the registered agent cannot be found, then service of process on the
3826	6783		limited liability company may be made by serving the Secretary of
3827	6784		State as its agent as provided in Section 2004 of Title 12 of the
3828	6785		Oklahoma Statutes.
3829		-
3830	6786		SECTION 20. AMENDATORY 18 O.S. 2011, Section 2016, is
3831	6787		amended to read as follows:
3832		-
3833	6788		Section 2016.
3834		-
3835	6789		MANAGERS – DUTIES – GOOD FAITH – LIABILITY
3836		-
3837	6790		Subject to the provisions of Section 2017 of this title:
	6791	+
	6792	+	SB228 HFLR Page 134
	6793	+	BOLD FACE denotes Committee Amendments. 1
	6794	+	2
	6795	+	3
	6796	+	4
	6797	+	5
	6798	+	6
	6799	+	7
	6800	+	8
	6801	+	9
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	6804	+	12
	6805	+	13
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3838	6817
3839	6818		1. A manager shall discharge the duties as a manager in good
3840	6819		faith, with the care an ordinary prudent person in a like position
3841	6820		could exercise under similar circumstances, and in the manner the
3842	6821		manager reasonably believes to be in the best interests of the
3843	6822		limited liability company;
3844		-
3845	6823		2. In discharging the duties, a manager may rely on
3846	6824		information, opinions, reports or statements , including financial
3847	6825		statements and other financial data, if prepared or presented by:
3848		-
3849	6826		a. one or more employees of the limited liability company
3850	6827		whom the manager reasonably believes to be reliable
3851	6828		and competent in the matters presented,
3852		-
3853	6829		b. legal counsel, public accountants, or other persons as
3854	6830		to matters the manager reasonably believes are within
3855	6831		the person’s professional or expert competence, or
3856		-
3857		-
3858		-	ENR. S. B. NO. 228 Page 89
3859	6832		c. a committee of managers of which the manager is not a
3860	6833		member if the manager reasonably believes the
3861	6834		committee merits confidence;
3862		-
3863	6835		A manager is not acting in good faith if the manager has
3864	6836		knowledge concerning the matter in question that makes reliance
3865	6837		otherwise permitted by this paragraph unwarranted;
3866		-
3867	6838		3. Unless otherwise provided in the operating agreement, a
3868	6839		manager has the power and authority to delegate to one or more other
3869	6840		persons any or all of the manager’s rights and, powers and duties to
3870	6841		manage and control the business and affairs of the limited liability
	6842	+
	6843	+	SB228 HFLR Page 135
	6844	+	BOLD FACE denotes Committee Amendments. 1
	6845	+	2
	6846	+	3
	6847	+	4
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	6868	+
3871	6869		company, including to delegate . Any delegation may be to the
3872	6870		agents, officers and employees of a manager to of the limited
3873	6871		liability company, and to delegate by a management agreement or
3874	6872		another agreement with, or otherwise to, other persons. A
3875	6873		delegation may be irrevocable if it states that it is irrevocable.
3876	6874		The delegation by a manager shall not cause the manager to cease to
3877	6875		be a manager of the limited liabili ty company or cause the delegate
3878	6876		to be a manager of the limited liability company. No other
3879	6877		provision of the Oklahoma Limited Liability Company Act shall be
3880	6878		construed to restrict a manager ’s power and authority to delegate
3881	6879		any or all of the manager ’s rights, powers and duties to manage and
3882	6880		control the business and affairs of the limited liability company ;
3883		-
3884	6881		4. A manager is not liable for any action taken as a manager,
3885	6882		or any failure to take any action, if the manager performed the
3886	6883		duties of the office in co mpliance with the business judgment rule
3887	6884		as applied to directors and officers of a corporation; and
3888		-
3889	6885		5. Except as otherwise provided in the articles of organization
3890	6886		or operating agreement, every manager must account to the limited
3891	6887		liability company and hol d as trustee for it any profit or benefit
3892	6888		derived by the manager without the informed consent of the members
3893	6889		from any transaction connected with the conduct or winding up of the
3894	6890		limited liability company or from any personal use by the manager of
3895	6891		its property.
3896	6892
	6893	+	SB228 HFLR Page 136
	6894	+	BOLD FACE denotes Committee Amendments. 1
	6895	+	2
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	6918	+
3897	6919		SECTION 21. AMENDATORY 18 O.S. 2011, Section 2054.1, as
3898	6920		amended by Section 52, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
3899	6921		Section 2054.1), is amended to read as follows:
3900		-
3901		-
3902		-	ENR. S. B. NO. 228 Page 90
3903	6922		Section 2054.1.
3904		-
3905	6923		CONVERSION OF AN ENTITY TO A LIMITED LIABILITY COMPANY
3906		-
3907	6924		A. As used in this section, the term “ entity” means a foreign
3908	6925		limited liability company, a domestic or foreign public benefit
3909	6926		limited liability company, a domestic or foreign corporation, a
3910	6927		domestic or foreign partnership whether genera l or limited, and
3911	6928		including a limited liability partnership and a limited liability
3912	6929		limited partnership, and any domestic or foreign unincorporated
3913	6930		nonprofit or for-profit association, trust or enterprise having
3914	6931		members or having outstanding shares of stoc k or other evidences of
3915	6932		financial, beneficial or membership interest therein, whether formed
3916	6933		by agreement or under statutory authority or otherwise.
3917		-
3918	6934		B. Any entity may convert to a domestic limited liability
3919	6935		company by complying with subsection H of this s ection and filing
3920	6936		with the Secretary of State in accordance with Section 2007 of this
3921	6937		title articles of conversion to a limited liability company that
3922	6938		have been executed in accordance with Section 2006 of this title, to
3923	6939		which shall be attached articles of organization that comply with
3924	6940		Sections 2005 and 2008 of this title and have been executed by one
3925	6941		or more authorized persons in accordance with Section 2006 of this
3926	6942		title.
3927	6943
	6944	+	SB228 HFLR Page 137
	6945	+	BOLD FACE denotes Committee Amendments. 1
	6946	+	2
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	6968	+	24
	6969	+
3928	6970		C. The articles of conversion to a limited liability company
3929	6971		shall state:
3930		-
3931	6972		1. The date on which the entity was first formed;
3932		-
3933	6973		2. The name, jurisdiction of formation of the entity, and type
3934	6974		of entity when formed and, if changed, its name, jurisdiction , and
3935	6975		type of entity immediately before filing of the articles of
3936	6976		conversion to limited li ability company;
3937		-
3938	6977		3. The name of the limited liability company as set forth in
3939	6978		its articles of organization filed in accordance with subsection B
3940	6979		of this section; and
3941		-
3942	6980		4. The future effective date or time of the conversion to a
3943	6981		limited liability company, w hich shall be a date or time certain not
3944	6982		later than ninety (90) days after the filing, if it is not to be
3945		-
3946		-	ENR. S. B. NO. 228 Page 91
3947	6983		effective upon the filing of the articles of conversion to a limited
3948	6984		liability company and the articles of organization.
3949		-
3950	6985		D. Upon the effective date o r time of the articles of
3951	6986		conversion to limited liability company and the articles of
3952	6987		organization, the entity shall be converted to a domestic limited
3953	6988		liability company and the limited liability company shall thereafter
3954	6989		be subject to all of the provisions of the Oklahoma Limited
3955	6990		Liability Company Act, except that notwithstanding Section 2004 of
3956	6991		this title, the existence of the limited liability company shall be
3957	6992		deemed to have commenced on the date the entity was formed.
3958	6993
	6994	+	SB228 HFLR Page 138
	6995	+	BOLD FACE denotes Committee Amendments. 1
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	7019	+
3959	7020		E. The conversion of any entity int o a domestic limited
3960	7021		liability company shall not be deemed to affect any obligations or
3961	7022		liabilities of the entity incurred before its conversion to a
3962	7023		domestic limited liability company or the personal liability of any
3963	7024		person incurred before the conversion.
3964		-
3965	7025		F. When an entity has converted to a domestic limited liability
3966	7026		company under this section, the domestic limited liability company
3967	7027		shall be deemed to be the same entity as the converting entity. All
3968	7028		of the rights, privileges and powers of the entity tha t has
3969	7029		converted, and all property, real, personal and mixed, and all debts
3970	7030		due to the entity, as well as all other things and causes of action
3971	7031		belonging to the entity, shall remain vested in the domestic limited
3972	7032		liability company and shall be the property of the domestic limited
3973	7033		liability company, and the title to any real property vested by deed
3974	7034		or otherwise in the entity shall not revert or be in any way
3975	7035		impaired by reason of the conversion, but all rights of creditors
3976	7036		and all liens upon any property of t he entity shall be preserved
3977	7037		unimpaired, and all debts, liabilities and duties of the entity that
3978	7038		has converted shall remain attached to the domestic limited
3979	7039		liability company and may be enforced against it to the same extent
3980	7040		as if the debts, liabilities a nd duties had been incurred or
3981	7041		contracted by it in its capacity as a domestic limited liability
3982	7042		company. The rights, privileges, powers and interests in property
3983	7043		of the entity, as well as the debts, liabilities and duties of the
	7044	+
	7045	+	SB228 HFLR Page 139
	7046	+	BOLD FACE denotes Committee Amendments. 1
	7047	+	2
	7048	+	3
	7049	+	4
	7050	+	5
	7051	+	6
	7052	+	7
	7053	+	8
	7054	+	9
	7055	+	10
	7056	+	11
	7057	+	12
	7058	+	13
	7059	+	14
	7060	+	15
	7061	+	16
	7062	+	17
	7063	+	18
	7064	+	19
	7065	+	20
	7066	+	21
	7067	+	22
	7068	+	23
	7069	+	24
	7070	+
3984	7071		entity, shall not be deeme d, as a consequence of the conversion, to
3985	7072		have been transferred to the domestic limited liability company to
3986	7073		which the entity has converted for any purpose of the laws of this
3987	7074		state.
3988		-
3989		-
3990		-	ENR. S. B. NO. 228 Page 92
3991	7075		G. Unless otherwise agreed or otherwise provided by any laws of
3992	7076		this state applicable to the converting entity, the converting
3993	7077		entity shall not be required to wind up its affairs or pay its
3994	7078		liabilities and distribute its assets, and the conversion shall not
3995	7079		be deemed to constitute a dissolution of the entity and shall
3996	7080		constitute a continuation of the existence of the converting entity
3997	7081		in the form of a domestic limited liability company.
3998		-
3999	7082		H. Before filing the articles of conversion to a domestic
4000	7083		limited liability company with the Office of the Secretary of State,
4001	7084		the conversion shall be approved in the manner provided for by the
4002	7085		document, instrument, agreement or other writing, as the case may
4003	7086		be, governing the internal affairs of the entity and the conduct of
4004	7087		its business or by applicable law, as appropriate, and articles of
4005	7088		organization shall be approved by the same authorization required to
4006	7089		approve the conversion.
4007		-
4008	7090		I. In a conversion of an entity to a domestic limited liability
4009	7091		company under this section, rights or securities of or memberships
4010	7092		or membership, economic or ownersh ip interests in the entity that is
4011	7093		to be converted to a domestic limited liability company may be
4012	7094		exchanged for or converted into cash, property, or rights or
	7095	+
	7096	+	SB228 HFLR Page 140
	7097	+	BOLD FACE denotes Committee Amendments. 1
	7098	+	2
	7099	+	3
	7100	+	4
	7101	+	5
	7102	+	6
	7103	+	7
	7104	+	8
	7105	+	9
	7106	+	10
	7107	+	11
	7108	+	12
	7109	+	13
	7110	+	14
	7111	+	15
	7112	+	16
	7113	+	17
	7114	+	18
	7115	+	19
	7116	+	20
	7117	+	21
	7118	+	22
	7119	+	23
	7120	+	24
	7121	+
4013	7122		securities of or interests in the domestic limited liability company
4014	7123		or, in addition to or in lie u thereof, may be exchanged for or
4015	7124		converted into cash, property or rights or securities of or
4016	7125		memberships or membership, economic or ownership interests in
4017	7126		another domestic limited liability company or other entity.
4018		-
4019	7127		J. The provisions of this section shal l not be construed to
4020	7128		limit the accomplishment of a change in the law governing, or the
4021	7129		domicile of, an entity to this state by any other means provided for
4022	7130		in an operating agreement or other agreement or as otherwise
4023	7131		permitted by law, including by the ame ndment of an operating
4024	7132		agreement or other agreement.
4025		-
4026	7133		K. Nothing in this section shall be deemed to authorize the
4027	7134		conversion of a charitable entity into a domestic limited liability
4028	7135		company, if the charitable status of such entity would thereby be
4029	7136		lost or impaired.
4030		-
4031		-
4032		-	ENR. S. B. NO. 228 Page 93
4033	7137		SECTION 22. AMENDATORY 18 O.S. 2011, Section 2054.2, as
4034	7138		amended by Section 53, Chapter 323, O.S.L. 2017 (18 O.S. Supp. 2020,
4035	7139		Section 2054.2), is amended to read as follows:
4036		-
4037	7140		Section 2054.2.
4038		-
4039	7141		CONVERSION OF A LIMITED LIABILIT Y COMPANY TO AN ENTITY
4040		-
4041	7142		A. A domestic limited liability company may convert to an
4042	7143		entity upon the authorization of such conversion in accordance with
4043	7144		this section. As used in this section, the term “ entity” means a
4044	7145		foreign limited liability company, a do mestic or foreign public
	7146	+
	7147	+	SB228 HFLR Page 141
	7148	+	BOLD FACE denotes Committee Amendments. 1
	7149	+	2
	7150	+	3
	7151	+	4
	7152	+	5
	7153	+	6
	7154	+	7
	7155	+	8
	7156	+	9
	7157	+	10
	7158	+	11
	7159	+	12
	7160	+	13
	7161	+	14
	7162	+	15
	7163	+	16
	7164	+	17
	7165	+	18
	7166	+	19
	7167	+	20
	7168	+	21
	7169	+	22
	7170	+	23
	7171	+	24
	7172	+
4045	7173		benefit limited liability company, a domestic or foreign
4046	7174		corporation, a domestic or foreign partnership whether general or
4047	7175		limited, and including a limited liability partnership and a limited
4048	7176		liability limited partnership, and any domestic or foreign
4049	7177		unincorporated nonprofit or for -profit association, trust or
4050	7178		enterprise having members or having outstanding shares of stock or
4051	7179		other evidences of financial, beneficial or membership interest
4052	7180		therein, whether formed by agreement or unde r statutory authority or
4053	7181		otherwise.
4054		-
4055	7182		B. If the operating agreement specifies the manner of
4056	7183		authorizing a conversion of the limited liability company, the
4057	7184		conversion shall be authorized as specified in the operating
4058	7185		agreement.
4059		-
4060	7186		C. If the operating agreement does not specify the manner of
4061	7187		authorizing a conversion of the limited liability company and does
4062	7188		not prohibit a conversion of the limited liability company, the
4063	7189		conversion shall be authorized in the same manner as is specified in
4064	7190		the operating agreement for authorizing a merger or consolidation
4065	7191		that involves the limited liability company as a constituent party
4066	7192		to a merger or consolidation.
4067		-
4068	7193		D. If the operating agreement does not specify the manner of
4069	7194		authorizing a conversion of the limited liability compa ny or a
4070	7195		merger or consolidation that involves the limited liability company
4071	7196		as a constituent party and does not prohibit a conversion of the
	7197	+
	7198	+	SB228 HFLR Page 142
	7199	+	BOLD FACE denotes Committee Amendments. 1
	7200	+	2
	7201	+	3
	7202	+	4
	7203	+	5
	7204	+	6
	7205	+	7
	7206	+	8
	7207	+	9
	7208	+	10
	7209	+	11
	7210	+	12
	7211	+	13
	7212	+	14
	7213	+	15
	7214	+	16
	7215	+	17
	7216	+	18
	7217	+	19
	7218	+	20
	7219	+	21
	7220	+	22
	7221	+	23
	7222	+	24
	7223	+
4072	7224		limited liability company, the conversion shall be authorized by the
4073	7225		approval of a majority of the membership inter est or, if there is
4074	7226		more than one class or group of members, then by a majority of the
4075		-
4076		-	ENR. S. B. NO. 228 Page 94
4077	7227		membership interest in each class or group of members.
4078	7228		Notwithstanding the foregoing, in addition to any other
4079	7229		authorization required by this section, if the entity int o which the
4080	7230		limited liability company is to convert does not afford all of its
4081	7231		interest holders protection against personal liability for the debts
4082	7232		of the entity, the conversion must be authorized by any and all
4083	7233		members who would be exposed to personal lia bility.
4084		-
4085	7234		E. Unless otherwise agreed, the conversion of a domestic
4086	7235		limited liability company to another entity pursuant to this section
4087	7236		shall not require the limited liability company to wind up its
4088	7237		affairs or pay its liabilities and distribute its assets, and the
4089	7238		conversion shall not constitute a dissolution of the limited
4090	7239		liability company.
4091		-
4092	7240		F. In a conversion of a domestic limited liability company to
4093	7241		an entity under this section, rights or securities of or interests
4094	7242		in the domestic limited liability comp any which are to be converted
4095	7243		may be exchanged for or converted into cash, property, rights or
4096	7244		securities of or memberships or membership, economic or ownership
4097	7245		interests in the entity to which the domestic limited liability
4098	7246		company is being converted or, in addition to or in lieu thereof,
4099	7247		may be exchanged for or converted into cash, property, rights or
	7248	+
	7249	+	SB228 HFLR Page 143
	7250	+	BOLD FACE denotes Committee Amendments. 1
	7251	+	2
	7252	+	3
	7253	+	4
	7254	+	5
	7255	+	6
	7256	+	7
	7257	+	8
	7258	+	9
	7259	+	10
	7260	+	11
	7261	+	12
	7262	+	13
	7263	+	14
	7264	+	15
	7265	+	16
	7266	+	17
	7267	+	18
	7268	+	19
	7269	+	20
	7270	+	21
	7271	+	22
	7272	+	23
	7273	+	24
	7274	+
4100	7275		securities of or memberships or membership, economic or ownership
4101	7276		interests in another entity or may be canceled.
4102		-
4103	7277		G. If the governing act of the a domestic entity to which the
4104	7278		limited liability company is converting does not provide for the
4105	7279		filing of a conversion notice with the Secretary of State or the
4106	7280		limited liability company is converting to a foreign entity,
4107	7281		articles of conversion executed in accordanc e with Section 2006 of
4108	7282		this title, shall be filed in the Office of the Secretary of State
4109	7283		in accordance with Section 2007 of this title. The articles of
4110	7284		conversion shall state:
4111		-
4112	7285		1. The name of the limited liability company and, if it has
4113	7286		been changed, the name under which its articles of organization were
4114	7287		originally filed;
4115		-
4116	7288		2. The date of filing of its original articles of organization
4117	7289		with the Secretary of State;
4118		-
4119		-
4120		-	ENR. S. B. NO. 228 Page 95
4121	7290		3. The name and type of entity to which the limited liability
4122	7291		company is converting and its jurisdiction of formation, if a
4123	7292		foreign entity;
4124		-
4125	7293		4. The future effective date or time of the conversion, which
4126	7294		shall be a date or time certain not later than ninety (90) days
4127	7295		after the filing, if it is not to be effective upon the filing of
4128	7296		the articles of conversion;
4129		-
4130	7297		5. That the conversion has been approved in accordance with
4131	7298		this section;
	7299	+
	7300	+	SB228 HFLR Page 144
	7301	+	BOLD FACE denotes Committee Amendments. 1
	7302	+	2
	7303	+	3
	7304	+	4
	7305	+	5
	7306	+	6
	7307	+	7
	7308	+	8
	7309	+	9
	7310	+	10
	7311	+	11
	7312	+	12
	7313	+	13
	7314	+	14
	7315	+	15
	7316	+	16
	7317	+	17
	7318	+	18
	7319	+	19
	7320	+	20
	7321	+	21
	7322	+	22
	7323	+	23
	7324	+	24
4132	7325
4133	7326		6. The agreement of the foreign entity that it may be served
4134	7327		with process in this state in any action, suit or proceeding for
4135	7328		enforcement of any obligation of the fore ign entity arising while it
4136	7329		was a domestic limited liability company, and that it irrevocably
4137	7330		appoints the Secretary of State as its agent to accept service of
4138	7331		process in any such action, suit or proceeding, and its street
4139	7332		address to which a copy of the pr ocess shall be mailed to it by the
4140	7333		Secretary of State; and
4141		-
4142	7334		7. If the domestic entity to which the domestic limited
4143	7335		liability company is converting was required to make a filing with
4144	7336		the Secretary of State as a condition of its formation, the type and
4145	7337		date of such filing.
4146		-
4147	7338		H. Upon the filing of a conversion notice with the Secretary of
4148	7339		State, whether under subsection G of this section or under the
4149	7340		governing act of the domestic entity to which the limited liability
4150	7341		company is converting, the filing of any fo rmation document required
4151	7342		by the governing act of the domestic entity to which the limited
4152	7343		liability company is converting, and payment to the Secretary of
4153	7344		State of all prescribed fees, the Secretary of State shall certify
4154	7345		that the limited liability compan y has filed all documents and paid
4155	7346		all required fees, and thereupon the domestic limited liability
4156	7347		company shall cease to exist as a limited liability company of this
4157	7348		state. The Secretary of State ’s certificate shall be prima facie
	7349	+
	7350	+	SB228 HFLR Page 145
	7351	+	BOLD FACE denotes Committee Amendments. 1
	7352	+	2
	7353	+	3
	7354	+	4
	7355	+	5
	7356	+	6
	7357	+	7
	7358	+	8
	7359	+	9
	7360	+	10
	7361	+	11
	7362	+	12
	7363	+	13
	7364	+	14
	7365	+	15
	7366	+	16
	7367	+	17
	7368	+	18
	7369	+	19
	7370	+	20
	7371	+	21
	7372	+	22
	7373	+	23
	7374	+	24
	7375	+
4158	7376		evidence of the convers ion by the domestic limited liability
4159	7377		company.
4160		-
4161	7378		I. The conversion of a domestic limited liability company to an
4162	7379		entity under this section and the resulting cessation of its
4163		-
4164		-	ENR. S. B. NO. 228 Page 96
4165	7380		existence as a domestic limited liability company shall not be
4166	7381		deemed to affect any obligations or liabilities of the limited
4167	7382		liability company incurred before the conversion or the personal
4168	7383		liability of any person incurred before the conversion, nor shall it
4169	7384		be deemed to affect the choice of law applicable to the limited
4170	7385		liability company with respect to matters arising before the
4171	7386		conversion.
4172		-
4173	7387		J. When a domestic limited liability company has converted to
4174	7388		an entity under this section, the entity shall be deemed to be the
4175	7389		same entity as the limited liability company. All of the rights,
4176	7390		privileges and powers of the domestic limited liability company that
4177	7391		has converted, and all property, real, personal and mixed, and all
4178	7392		debts due to the limited liability company, as well as all other
4179	7393		things and causes of action belonging to the limited liab ility
4180	7394		company, shall remain vested in the entity to which the domestic
4181	7395		limited liability company has converted and shall be the property of
4182	7396		the entity, and the title to any real property vested by deed or
4183	7397		otherwise in the domestic limited liability company shall not revert
4184	7398		or be in any way impaired by reason of the conversion; but all
4185	7399		rights of creditors and all liens upon any property of the limited
	7400	+
	7401	+	SB228 HFLR Page 146
	7402	+	BOLD FACE denotes Committee Amendments. 1
	7403	+	2
	7404	+	3
	7405	+	4
	7406	+	5
	7407	+	6
	7408	+	7
	7409	+	8
	7410	+	9
	7411	+	10
	7412	+	11
	7413	+	12
	7414	+	13
	7415	+	14
	7416	+	15
	7417	+	16
	7418	+	17
	7419	+	18
	7420	+	19
	7421	+	20
	7422	+	21
	7423	+	22
	7424	+	23
	7425	+	24
	7426	+
4186	7427		liability company shall be preserved unimpaired, and all debts,
4187	7428		liabilities and duties of the limited liabil ity company that has
4188	7429		converted shall remain attached to the entity to which the domestic
4189	7430		limited liability company has converted, and may be enforced against
4190	7431		it to the same extent as if said the debts, liabilities and duties
4191	7432		had originally been incurred or contracted by it in its capacity as
4192	7433		the entity. The rights, privileges, powers and interests in
4193	7434		property of the domestic limited liability company that has
4194	7435		converted, as well as the debts, liabilities and duties of the
4195	7436		limited liability company, shall no t be deemed, as a consequence of
4196	7437		the conversion, to have been transferred to the entity to which the
4197	7438		limited liability company has converted for any purpose of the laws
4198	7439		of this state.
4199		-
4200	7440		K. Nothing in this section shall be deemed to authorize the
4201	7441		conversion of a charitable domestic limited liability company into
4202	7442		another entity, if the charitable status of such domestic limited
4203	7443		liability company would thereby be lost or impaired.
4204		-
4205		-
4206		-	ENR. S. B. NO. 228 Page 97
4207	7444		SECTION 23. NEW LAW A new section of law to be codified
4208	7445		in the Oklahoma Statutes as Section 2061 of Title 18, unless there
4209	7446		is created a duplication in numbering, reads as follows:
4210		-
4211	7447		PUBLIC BENEFIT LIMITED LIABILITY COMPANIES.
4212		-
4213	7448		A. Sections 23 through 29 of this act shall be known and may be
4214	7449		cited as the “Oklahoma Public Benefit Limited Liability Company Act ”
4215	7450		and within such sections as this act.
	7451	+
	7452	+	SB228 HFLR Page 147
	7453	+	BOLD FACE denotes Committee Amendments. 1
	7454	+	2
	7455	+	3
	7456	+	4
	7457	+	5
	7458	+	6
	7459	+	7
	7460	+	8
	7461	+	9
	7462	+	10
	7463	+	11
	7464	+	12
	7465	+	13
	7466	+	14
	7467	+	15
	7468	+	16
	7469	+	17
	7470	+	18
	7471	+	19
	7472	+	20
	7473	+	21
	7474	+	22
	7475	+	23
	7476	+	24
4216	7477
4217	7478		B. A “public benefit limited liability company ” is a for-profit
4218	7479		limited liability company formed under and subject to the
4219	7480		requirements of the Oklahoma Limited Liability Comp any Act including
4220	7481		a professional limited liability company, that is intended to
4221	7482		produce a public benefit or public benefits and to operate in a
4222	7483		responsible and sustainable manner as provided under this act. A
4223	7484		public benefit limited liability company is fo rmed by filing
4224	7485		articles of organization as required under the Oklahoma Limited
4225	7486		Liability Company Act and further by stating in the heading of its
4226	7487		articles of organization that it is a public benefit limited
4227	7488		liability company and by setting forth one or mor e public benefits
4228	7489		to be promoted by the limited liability company in its articles of
4229	7490		organization. The operating agreement of a public benefit limited
4230	7491		liability company may not contain any provision inconsistent with
4231	7492		this act.
4232		-
4233	7493		C. “Public benefit” means a positive effect, or reduction of
4234	7494		negative effects, on one or more categories of persons, entities,
4235	7495		communities or interests, other than members in their capacities as
4236	7496		members including effects of an artistic, charitable, cultural,
4237	7497		economic, educational, e nvironmental, literary, medical, religious,
4238	7498		scientific or technological nature. “Public benefit provisions ”
4239	7499		means the provisions of the articles of organization or an operating
4240	7500		agreement contemplated by this act.
4241	7501
	7502	+	SB228 HFLR Page 148
	7503	+	BOLD FACE denotes Committee Amendments. 1
	7504	+	2
	7505	+	3
	7506	+	4
	7507	+	5
	7508	+	6
	7509	+	7
	7510	+	8
	7511	+	9
	7512	+	10
	7513	+	11
	7514	+	12
	7515	+	13
	7516	+	14
	7517	+	15
	7518	+	16
	7519	+	17
	7520	+	18
	7521	+	19
	7522	+	20
	7523	+	21
	7524	+	22
	7525	+	23
	7526	+	24
	7527	+
4242	7528		SECTION 24. NEW LAW A new section of law to be codified
4243	7529		in the Oklahoma Statutes as Section 2062 of Title 18, unless there
4244	7530		is created a duplication in numbering, reads as follows:
4245		-
4246	7531		CERTAIN AMENDMENTS AND MERGERS; VOTES REQUIRED.
4247		-
4248		-
4249		-	ENR. S. B. NO. 228 Page 98
4250	7532		A. Upon the approval of members or other holde rs who own at
4251	7533		least two-thirds (2/3) of the then outstanding equity interests
4252	7534		entitled to vote:
4253		-
4254	7535		1. An existing domestic limited liability company including a
4255	7536		professional limited liability company, may become a public benefit
4256	7537		limited liability company by amending its articles of organization
4257	7538		to conform to the public benefit provisions of subsection B of
4258	7539		Section 20 of this act; or
4259		-
4260	7540		2. A domestic entity that is not a public benefit limited
4261	7541		liability company may become a public benefit limited liability
4262	7542		company through a merger, consolidation, exchange or conversion in
4263	7543		which the surviving or resulting entity is a public benefit limited
4264	7544		liability company whose articles of organization conform to the
4265	7545		public benefit provisions of subsection B of Section 2 3 of this act.
4266		-
4267	7546		B. “Domestic entity” is a limited liability company,
4268	7547		corporation, partnership whether general or limited, and including a
4269	7548		limited liability partnership and a limited liability limited
4270	7549		partnership, an entity subject to the Professional Entity Act, o r
4271	7550		any unincorporated nonprofit or for -profit association, trust or
4272	7551		enterprise having members or having outstanding shares of stock or
	7552	+
	7553	+	SB228 HFLR Page 149
	7554	+	BOLD FACE denotes Committee Amendments. 1
	7555	+	2
	7556	+	3
	7557	+	4
	7558	+	5
	7559	+	6
	7560	+	7
	7561	+	8
	7562	+	9
	7563	+	10
	7564	+	11
	7565	+	12
	7566	+	13
	7567	+	14
	7568	+	15
	7569	+	16
	7570	+	17
	7571	+	18
	7572	+	19
	7573	+	20
	7574	+	21
	7575	+	22
	7576	+	23
	7577	+	24
	7578	+
4273	7579		other evidences of financial, beneficial or membership interest
4274	7580		therein, whether formed by agreement or under statutory au thority or
4275	7581		otherwise, formed under the laws of this jurisdiction.
4276		-
4277	7582		C. A public benefit limited liability company may not, without
4278	7583		the approval of members who own at least two -thirds (2/3) of the
4279	7584		then outstanding membership interests of the limited liabilit y
4280	7585		company entitled to vote:
4281		-
4282	7586		1. Amend its articles of organization to delete, add or amend a
4283	7587		provision required by subsection B of Section 2 3 of this act;
4284		-
4285	7588		2. Merge or consolidate with or exchange or convert into
4286	7589		another entity if, as a result of such merg er, consolidation,
4287	7590		exchange or conversion, the membership interests in such limited
4288	7591		liability company would become, or be converted into or exchanged
4289	7592		for the right to receive, membership interests or other equity
4290	7593		interests in a domestic or foreign limited liability company or
4291	7594		other entity that is not a public benefit limited liability company
4292		-
4293		-	ENR. S. B. NO. 228 Page 99
4294	7595		or similar entity, the articles of organization or operating
4295	7596		agreement, or similar governing document, of which does not contain
4296	7597		provisions identifying a public benefi t or public benefits
4297	7598		comparable in all material respects to those set forth in the
4298	7599		articles of organization of such limited liability company as
4299	7600		contemplated by subsection B of Section 2 3 of this act; or
4300		-
4301	7601		3. Cease to be a public benefit limited liability c ompany under
4302	7602		the provisions of this act.
	7603	+
	7604	+	SB228 HFLR Page 150
	7605	+	BOLD FACE denotes Committee Amendments. 1
	7606	+	2
	7607	+	3
	7608	+	4
	7609	+	5
	7610	+	6
	7611	+	7
	7612	+	8
	7613	+	9
	7614	+	10
	7615	+	11
	7616	+	12
	7617	+	13
	7618	+	14
	7619	+	15
	7620	+	16
	7621	+	17
	7622	+	18
	7623	+	19
	7624	+	20
	7625	+	21
	7626	+	22
	7627	+	23
	7628	+	24
4303	7629
4304	7630		SECTION 25. NEW LAW A new section of law to be codified
4305	7631		in the Oklahoma Statutes as Section 2063 of Title 18, unless there
4306	7632		is created a duplication in numbering, reads as follows:
4307		-
4308	7633		DUTIES OF MEMBERS OR MANAGERS.
4309		-
4310	7634		A. The members or managers or other persons with authority to
4311	7635		manage or direct the business and affairs of a public benefit
4312	7636		limited liability company shall manage or direct the business and
4313	7637		affairs of the public benefit limited liabilit y company in a manner
4314	7638		that balances the pecuniary interests of the members, the best
4315	7639		interests of those materially affected by the limited liability
4316	7640		company’s conduct, and the specific public benefit or public
4317	7641		benefits set forth in its articles of organiza tion. Unless
4318	7642		otherwise provided in an operating agreement, no member, manager or
4319	7643		other person with authority to manage or direct the business and
4320	7644		affairs of the public benefit limited liability company shall have
4321	7645		any liability for monetary damages for the failure to manage or
4322	7646		direct the business and affairs of the public benefit limited
4323	7647		liability company as provided in this subsection.
4324		-
4325	7648		B. A member or manager of a public benefit limited liability
4326	7649		company or any other person with authority to manage or dire ct the
4327	7650		business and affairs of the public benefit limited liability company
4328	7651		shall not, by virtue of the public benefit provisions or subsection
4329	7652		B of Section 23 of this act, have any duty to any person on account
4330	7653		of any interest of such person in the public benefit or public
	7654	+
	7655	+	SB228 HFLR Page 151
	7656	+	BOLD FACE denotes Committee Amendments. 1
	7657	+	2
	7658	+	3
	7659	+	4
	7660	+	5
	7661	+	6
	7662	+	7
	7663	+	8
	7664	+	9
	7665	+	10
	7666	+	11
	7667	+	12
	7668	+	13
	7669	+	14
	7670	+	15
	7671	+	16
	7672	+	17
	7673	+	18
	7674	+	19
	7675	+	20
	7676	+	21
	7677	+	22
	7678	+	23
	7679	+	24
	7680	+
4331	7681		benefits set forth in its articles of organization or operating
4332	7682		agreement or on account of any interest materially affected by the
4333	7683		limited liability company ’s conduct and, with respect to a decision
4334	7684		implicating the balance requirement in subsection A of this section,
4335	7685		will be deemed to satisfy such person ’s fiduciary duties to members
4336		-
4337		-	ENR. S. B. NO. 228 Page 100
4338	7686		and the limited liability company if such person ’s decision is both
4339	7687		informed and disinterested and not such that no person of ordinary,
4340	7688		sound judgment would approve.
4341		-
4342	7689		SECTION 26. NEW LAW A new section of law to be codified
4343	7690		in the Oklahoma Statutes as Section 2064 of Title 18, unless there
4344	7691		is created a duplication in numbering, reads as follows:
4345		-
4346	7692		PERIODIC STATEMENTS AND THIRD -PARTY CERTIFICATION.
4347		-
4348	7693		A public benefit limited liability company shall no less than
4349	7694		biennially provide its members with a statement as to the limited
4350	7695		liability company’s promotion of the public benefit or public
4351	7696		benefits set forth in its articles of organization and as t o the
4352	7697		best interests of those materially affected by the limited liability
4353	7698		company’s conduct. The statement shall include:
4354		-
4355	7699		1. The objectives that have been established to promote such
4356	7700		public benefit or public benefits and interests;
4357		-
4358	7701		2. The standards tha t have been adopted to measure the limited
4359	7702		liability company’s progress in promoting such public benefit or
4360	7703		public benefits and interests;
	7704	+
	7705	+	SB228 HFLR Page 152
	7706	+	BOLD FACE denotes Committee Amendments. 1
	7707	+	2
	7708	+	3
	7709	+	4
	7710	+	5
	7711	+	6
	7712	+	7
	7713	+	8
	7714	+	9
	7715	+	10
	7716	+	11
	7717	+	12
	7718	+	13
	7719	+	14
	7720	+	15
	7721	+	16
	7722	+	17
	7723	+	18
	7724	+	19
	7725	+	20
	7726	+	21
	7727	+	22
	7728	+	23
	7729	+	24
4361	7730
4362	7731		3. Objective factual information based on those standards
4363	7732		regarding the limited liability company ’s success in meeting the
4364	7733		objectives for promoting such public benefit or public benefits and
4365	7734		interests; and
4366		-
4367	7735		4. An assessment of the limited liability company ’s success in
4368	7736		meeting the objectives and promoting such public benefit or public
4369	7737		benefits and interests.
4370		-
4371	7738		SECTION 27. NEW LAW A new section of law to be codified
4372	7739		in the Oklahoma Statutes as Section 2065 of Title 18, unless there
4373	7740		is created a duplication in numbering, reads as follows:
4374		-
4375	7741		DERIVATIVE SUITS.
4376		-
4377	7742		Members of a public benefit limited liability company or
4378	7743		assignees of membership interests in a public benefit limited
4379	7744		liability company owning individually or collectively, as of the
4380		-
4381		-	ENR. S. B. NO. 228 Page 101
4382	7745		date of instituting such derivative suit, at least two percent (2%)
4383	7746		of the then-current membership interests of the li mited liability
4384	7747		company may maintain a derivative lawsuit to enforce the
4385	7748		requirements set forth in subsection A of Section 2 5 of this act.
4386		-
4387	7749		SECTION 28. NEW LAW A new section of law to be codified
4388	7750		in the Oklahoma Statutes as Section 20 66 of Title 18, unless there
4389	7751		is created a duplication in numbering, reads as follows:
4390		-
4391	7752		NO EFFECT ON OTHER LIMITED LIABILITY COMPANIES.
	7753	+
	7754	+	SB228 HFLR Page 153
	7755	+	BOLD FACE denotes Committee Amendments. 1
	7756	+	2
	7757	+	3
	7758	+	4
	7759	+	5
	7760	+	6
	7761	+	7
	7762	+	8
	7763	+	9
	7764	+	10
	7765	+	11
	7766	+	12
	7767	+	13
	7768	+	14
	7769	+	15
	7770	+	16
	7771	+	17
	7772	+	18
	7773	+	19
	7774	+	20
	7775	+	21
	7776	+	22
	7777	+	23
	7778	+	24
4392	7779
4393	7780		This act shall not affect a statute or rule of law that is
4394	7781		applicable to a limited liability company that is not a public
4395	7782		benefit limited liability company.
4396		-
4397	7783		SECTION 29. NEW LAW A new section of law to be codified
4398	7784		in the Oklahoma Statutes as Section 2067 of Title 18, unless there
4399	7785		is created a duplication in numbering, reads as follows:
4400		-
4401	7786		ACCOMPLISHMENT BY OTHER MEANS.
4402		-
4403	7787		The provisions of this act shall not be construed to limit the
4404	7788		accomplishment by any other means permitted by law of the formation
4405	7789		or operation of a limited liability company that is formed or
4406	7790		operated for a public benefit including a limited liability company
4407	7791		that is designated as a public benefit limited liability company,
4408	7792		that is not a public benefit limited liability company.
4409		-
4410	7793		SECTION 30. AMENDATORY 54 O.S. 2011, Section 500 -114A,
4411	7794		is amended to read as follows:
4412		-
4413	7795		Section 500-114A.
4414		-
4415	7796		OFFICE AND AGENT FOR SERVICE OF PROCESS .
4416		-
4417	7797		(a) A limited partnership shall designate and continuously
4418	7798		maintain in this state:
4419		-
4420	7799		(1) an office, which need not be a place of its activity in
4421	7800		this state; and
4422		-
4423	7801		(2) an agent for service of process.
4424		-
4425		-	ENR. S. B. NO. 228 Page 102
4426		-
4427	7802		(b) A foreign limited partnership shall designate and
4428	7803		continuously maintain in this state an agent for service of process.
	7804	+
	7805	+	SB228 HFLR Page 154
	7806	+	BOLD FACE denotes Committee Amendments. 1
	7807	+	2
	7808	+	3
	7809	+	4
	7810	+	5
	7811	+	6
	7812	+	7
	7813	+	8
	7814	+	9
	7815	+	10
	7816	+	11
	7817	+	12
	7818	+	13
	7819	+	14
	7820	+	15
	7821	+	16
	7822	+	17
	7823	+	18
	7824	+	19
	7825	+	20
	7826	+	21
	7827	+	22
	7828	+	23
	7829	+	24
4429	7830
4430	7831		(c) An agent for service of process of a limited partnership or
4431	7832		foreign limited partnership must be an individual who is a resident
4432	7833		of this state or a corporation, limited liability company , or
4433	7834		general or limited partnership including a limited liability
4434	7835		partnership or a limited liability limited partnership, formed in or
4435	7836		authorized to do business in this state. A domestic limited
4436	7837		partnership may be its own agent.
4437		-
4438	7838		SECTION 31. This act shall become effective November 1, 202 1.
4439	7839
4440		-
4441		-	ENR. S. B. NO. 228 Page 103
4442		-	Passed the Senate the 1st day of March, 2021.
4443		-
4444		-
4445		-
4446		-	Presiding Officer of the Senate
4447		-
4448		-
4449		-	Passed the House of Representatives the 12th day of April, 2021.
4450		-
4451		-
4452		-
4453		-	Presiding Officer of the House
4454		-	of Representatives
4455		-
4456		-	OFFICE OF THE GOVERNOR
4457		-	Received by the Office of the Governor this _______ _____________
4458		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
4459		-	By: _______________________________ __
4460		-	Approved by the Governor of the St ate of Oklahoma this _____ ____
4461		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
4462		-
4463		-	_________________________________
4464		-	Governor of the State of Oklahoma
4465		-
4466		-
4467		-	OFFICE OF THE SECRETARY OF STATE
4468		-	Received by the Office of the Secretary of State t his __________
4469		-	day of __________________, 20 _______, at _______ o'clock _______ M.
4470		-	By: _______________________________ __
	7840	+	COMMITTEE REPORT BY: COMMITTEE ON RU LES, dated 03/30/2021 - DO PASS.