Oklahoma Senate Bill SB228

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/9/21
• Engrossed: 3/2/21
• Refer: 3/22/21
• Report Pass: 3/30/21
• Enrolled: 4/13/21
• Passed: 4/19/21

Caption

Business entities; modifying requirements for corporations, limited liability companies and limited partnerships. Effective date.

Impact

The bill's enactment represents a significant shift in Oklahoma's corporate landscape, potentially influencing how businesses operate in terms of accountability and public engagement. By allowing the formation of public benefit LLCs, the legislation enables businesses to pursue social or environmental objectives alongside profit generation. This new framework not only legitimizes but encourages companies to consider the impacts of their operations beyond mere financial returns, thereby impacting state laws concerning business governance and accountability.

Summary

SB228 introduces comprehensive amendments to the Oklahoma General Corporation Act, specifically targeting the formation, operation, and governance of business entities like corporations and limited liability companies (LLCs). This bill establishes regulations to authorize electronic communication for notices and consents, modifying procedures for issuing stock, and detailing the responsibilities of members and managers in public benefit limited liability companies. Furthermore, it sets forth guidelines for companies aiming to provide public benefits while balancing the interests of shareholders and the broader community.

Sentiment

Receptions of SB228 within legislative circles appear to be mixed, with supporters touting it as a progressive step towards promoting corporate responsibility and local economic development. Critics, however, have voiced concerns that the complexity introduced by new electronic procedures and public benefit obligations could impose additional bureaucratic burdens on small businesses. Balancing these sentiments highlights the ongoing dialogue about the role of businesses in society and the practicalities of enforcing expanded corporate responsibilities.

Contention

Notable points of contention include the requirements for public benefit disclosures and the potential for confusion regarding the new electronic procedures mandated by SB228. Some legislators argue that the additional compliance measures may deter small businesses from forming as public benefit LLCs due to fear of increased scrutiny or operational restrictions. As such, the conversation around SB228 is emblematic of broader tensions in corporate regulation: the push for social responsibility versus the need for economic flexibility.