SB 1906 Summary

• Creates the Oklahoma Religious-Based Entity Act, establishing a new legal framework for for-profit corporations, limited partnerships, and limited liability companies to operate with stated religious-based purposes.

• Requires religious-based entities to identify themselves with "Religious-Based," "R.B.," or "RB" in their legal name, be closely-held, obtain 80% owner approval of religious purposes, and include specific statements in formation documents.

• Permits managers to consider and pursue the entity's religious-based purpose even if inconsistent with profit maximization, and shields managers from personal liability for actions taken in furtherance of religious purposes (except for breach of loyalty duty, intentional misconduct, or improper personal benefit).

• Establishes that loss of religious-based entity status does not affect the entity's rights or standing under general business law, and requires 80% owner approval for non-religious-based entities to convert to religious-based status or vice versa.

• Amends the Oklahoma General Corporation Act to provide appraisal rights for shareholders in amendments, conversions, mergers, consolidations, or share exchanges involving religious-based entities.