Okla. Stat. tit. 18, § 18-951
This is the official text of Okla. Stat. tit. 18, § 18-951, part of Oklahoma’s Stat. tit. 18, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 18,." Browse the sections below, each linked to its official government source.
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Prohibition on forming - Exceptions
Official statutory text
A. It is hereby declared to be the public policy of this state
and shall be the prohibition of this act that, notwithstanding the
provisions of Section 5 of this act, no foreign corporation shall be
formed or licensed under the Oklahoma General Corporation Act for
the purpose of engaging in farming or ranching or for the purpose of
owning or leasing any interest in land to be used in the business of
farming or ranching. A domestic corporation may, however, be formed
under the Oklahoma General Corporation Act to engage in such
activity if the following requirements are met by that domestic
corporation:
1. There shall be no shareholders other than (a) natural
persons; (b) estates; (c) trustees of trusts for the benefit of
natural persons, if such trustees are either (i) natural persons or
(ii) banks or trust companies which either have their principal
place of business in Oklahoma or are organized under the laws of the
State of Oklahoma; or (d) corporations owned by no shareholders
other than those described in paragraph 1 (a), (b) or (c) of this
section and meeting the requirements of paragraph 3 of this section.
2. Not more than thirty-five percent (35%) of the corporation's
annual gross receipts shall be from any source other than (a)
farming or ranching or both, as the case may be, or (b) allowing
others to extract from the corporate lands any minerals underlying
the same, including, but not limited to, oil and gas. Provided,
however, in the event a corporation does not comply with the thirty-
five percent (35%) annual gross receipt test, then, in that event
the corporation may furnish records of its gross receipts for each
of the previous five (5) years, or for each year that it has been in
existence if less than five (5) years, and the average of said
annual gross receipts shall be used in lieu of the corporation's
annual gross receipts for purposes of complying with this section.
3. Except as otherwise provided in this paragraph, there shall
not be more than ten shareholders unless said shareholders in excess
of ten are related as lineal descendants or are or have been related
by marriage to lineal descendants or persons related to lineal
descendants by adoption or any combination of same. For a
corporation incorporated for the purpose of breeding horses, there
shall not be more than twenty-five shareholders.
4. Certificates of incorporation for domestic corporations
which intend to engage in farming or ranching or owning or leasing
any interest in land to be used in the business of farming or
Oklahoma Statutes - Title 18. Corporations Page 290
ranching shall initially be approved by the State Board of
Agriculture concerning the purpose prior to filing in the office of
the Secretary of State. No stated purpose is to be disapproved by
the Board of Agriculture unless such stated purpose violates
existing civil or criminal code.
B. The Secretary of State shall provide the State Department of
Agriculture a list of corporations registering in the state that
list farming or ranching or owning or leasing any interest in land
to be used in the business of farming or ranching at least weekly.
and shall be the prohibition of this act that, notwithstanding the
provisions of Section 5 of this act, no foreign corporation shall be
formed or licensed under the Oklahoma General Corporation Act for
the purpose of engaging in farming or ranching or for the purpose of
owning or leasing any interest in land to be used in the business of
farming or ranching. A domestic corporation may, however, be formed
under the Oklahoma General Corporation Act to engage in such
activity if the following requirements are met by that domestic
corporation:
1. There shall be no shareholders other than (a) natural
persons; (b) estates; (c) trustees of trusts for the benefit of
natural persons, if such trustees are either (i) natural persons or
(ii) banks or trust companies which either have their principal
place of business in Oklahoma or are organized under the laws of the
State of Oklahoma; or (d) corporations owned by no shareholders
other than those described in paragraph 1 (a), (b) or (c) of this
section and meeting the requirements of paragraph 3 of this section.
2. Not more than thirty-five percent (35%) of the corporation's
annual gross receipts shall be from any source other than (a)
farming or ranching or both, as the case may be, or (b) allowing
others to extract from the corporate lands any minerals underlying
the same, including, but not limited to, oil and gas. Provided,
however, in the event a corporation does not comply with the thirty-
five percent (35%) annual gross receipt test, then, in that event
the corporation may furnish records of its gross receipts for each
of the previous five (5) years, or for each year that it has been in
existence if less than five (5) years, and the average of said
annual gross receipts shall be used in lieu of the corporation's
annual gross receipts for purposes of complying with this section.
3. Except as otherwise provided in this paragraph, there shall
not be more than ten shareholders unless said shareholders in excess
of ten are related as lineal descendants or are or have been related
by marriage to lineal descendants or persons related to lineal
descendants by adoption or any combination of same. For a
corporation incorporated for the purpose of breeding horses, there
shall not be more than twenty-five shareholders.
4. Certificates of incorporation for domestic corporations
which intend to engage in farming or ranching or owning or leasing
any interest in land to be used in the business of farming or
Oklahoma Statutes - Title 18. Corporations Page 290
ranching shall initially be approved by the State Board of
Agriculture concerning the purpose prior to filing in the office of
the Secretary of State. No stated purpose is to be disapproved by
the Board of Agriculture unless such stated purpose violates
existing civil or criminal code.
B. The Secretary of State shall provide the State Department of
Agriculture a list of corporations registering in the state that
list farming or ranching or owning or leasing any interest in land
to be used in the business of farming or ranching at least weekly.
Status: in_force · Read it on the official government site
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