Senate Bill 729 Summary

• Creates the "Oklahoma Religious-Based Entity Act" establishing a legal framework for for-profit domestic corporations, limited partnerships, and limited liability companies to be organized around religious-based purposes.

• Requires religious-based entities to be closely-held, state at least one religious-based purpose in formation documents, and obtain approval from owners of 80% of voting interests.

• Permits managers to consider and pursue religious-based purposes without breaching fiduciary duties, even if inconsistent with profit maximization, and shields managers from personal liability for such decisions except for breaches of loyalty or intentional misconduct.

• Restricts non-religious entities from converting to religious-based status and religious-based entities from merging with non-religious entities without 80% owner approval, and requires annual records documenting pursuit of religious purposes.

• Amends appraisal rights law to include derivative action and appraisal rights for shares in amendments, conversions, mergers, and consolidations involving religious-based entities; effective November 1, 2015.