Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1804

Introduced
2/5/24  
Refer
2/6/24  
Report Pass
2/6/24  
Engrossed
3/6/24  

Caption

Limited liability companies; providing exception to personal liability protections for members or managers. Effective date.

Impact

The bill is poised to have significant implications for the state's business landscape by facilitating smoother reintegration of LLCs that have been inactive due to administrative issues. With changes ensuring that such companies can recover their standing without losing property or ability to defend against legal actions, SB1804 supports business continuity. It also serves to streamline the administrative processes involved in maintaining valid licenses and compliance with state regulations.

Summary

Senate Bill 1804 pertains to the regulations governing limited liability companies (LLCs) in Oklahoma. It amends existing law to clarify the process of reinstating LLCs that have fallen out of good standing due to non-compliance with annual filing requirements. This includes stipulations for how these companies can restore their status and protects managers or members from personal liability in specific situations when a company is not compliant, unless they had knowledge of the company's standing issues.

Sentiment

Throughout the discussions on SB1804, there was a largely supportive sentiment among lawmakers, viewing the bill as constructive for enhancing the business environment in Oklahoma. Business owners and advocates applauded the provisions that would simplify the reinstatement procedure, thereby encouraging more businesses to remain legally compliant without punitive measures that could jeopardize their assets. However, some skepticism arose regarding the potential for misuse of these protections if not monitored adequately.

Contention

A notable point of contention revolves around the balance of providing liability protections versus ensuring accountability among LLC managers and members. While proponents argue that minimizing personal liability encourages entrepreneurial risk-taking, critics fear it might inadvertently shield less scrupulous actors from repercussions related to non-compliance. This tension highlights a fundamental aspect of the debate over personal responsibility in business practices and the role of state regulations in facilitating fair business operations.

Companion Bills

No companion bills found.

Previously Filed As

OK SB649

Oklahoma Limited Liability Company Act; requiring manager signature on certain articles. Effective date.

OK HB2215

Torts; firearm lawsuits; limitations of liability; exceptions; repealer; effective date.

OK SB617

Venue; clarifying proper venue for actions against limited liability companies. Effective date.

OK SB576

Motor vehicles; exempting approved foreign export vehicles from excise tax when titled; providing fee for certain title; providing inspection exception. Effective date. Emergency.

OK HB2528

Retirement; Teachers' Retirement System of Oklahoma; references; terms; application; procedure; options; liability; expenses; effective date; emergency.

OK HB2373

Torts; Governmental Tort Claims Act; modifying limits of liability; effective date.

OK SB393

Sales tax exemption; providing exception to limit for disabled veterans exemption. Effective date.

OK SB1068

Sales tax; providing exemption for certain custom order manufacturers. Effective date.

OK SB620

Professional Entity Act; modifying requirements for persons holding interest in domestic professional entity; prohibiting certain persons from holding shares in certain professional corporations. Effective date.

OK HB2244

Motor vehicles; dealer management providers; protected dealer data; data management system; effective date.

Similar Bills

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