{"data":{"id":"us-ok/okla.-stat.-tit.-18-18-951","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 18, § 18-951","heading":"Prohibition on forming - Exceptions","body":"A. It is hereby declared to be the public policy of this state\n\nand shall be the prohibition of this act that, notwithstanding the\n\nprovisions of Section 5 of this act, no foreign corporation shall be\n\nformed or licensed under the Oklahoma General Corporation Act for\n\nthe purpose of engaging in farming or ranching or for the purpose of\n\nowning or leasing any interest in land to be used in the business of\n\nfarming or ranching. A domestic corporation may, however, be formed\n\nunder the Oklahoma General Corporation Act to engage in such\n\nactivity if the following requirements are met by that domestic\n\ncorporation:\n\n1. There shall be no shareholders other than (a) natural\n\npersons; (b) estates; (c) trustees of trusts for the benefit of\n\nnatural persons, if such trustees are either (i) natural persons or\n\n(ii) banks or trust companies which either have their principal\n\nplace of business in Oklahoma or are organized under the laws of the\n\nState of Oklahoma; or (d) corporations owned by no shareholders\n\nother than those described in paragraph 1 (a), (b) or (c) of this\n\nsection and meeting the requirements of paragraph 3 of this section.\n\n2. Not more than thirty-five percent (35%) of the corporation's\n\nannual gross receipts shall be from any source other than (a)\n\nfarming or ranching or both, as the case may be, or (b) allowing\n\nothers to extract from the corporate lands any minerals underlying\n\nthe same, including, but not limited to, oil and gas. Provided,\n\nhowever, in the event a corporation does not comply with the thirty-\n\nfive percent (35%) annual gross receipt test, then, in that event\n\nthe corporation may furnish records of its gross receipts for each\n\nof the previous five (5) years, or for each year that it has been in\n\nexistence if less than five (5) years, and the average of said\n\nannual gross receipts shall be used in lieu of the corporation's\n\nannual gross receipts for purposes of complying with this section.\n\n3. Except as otherwise provided in this paragraph, there shall\n\nnot be more than ten shareholders unless said shareholders in excess\n\nof ten are related as lineal descendants or are or have been related\n\nby marriage to lineal descendants or persons related to lineal\n\ndescendants by adoption or any combination of same. For a\n\ncorporation incorporated for the purpose of breeding horses, there\n\nshall not be more than twenty-five shareholders.\n\n4. Certificates of incorporation for domestic corporations\n\nwhich intend to engage in farming or ranching or owning or leasing\n\nany interest in land to be used in the business of farming or\n\nranching shall initially be approved by the State Board of\n\nAgriculture concerning the purpose prior to filing in the office of\n\nthe Secretary of State. No stated purpose is to be disapproved by\n\nthe Board of Agriculture unless such stated purpose violates\n\nexisting civil or criminal code.\n\nB. The Secretary of State shall provide the State Department of\n\nAgriculture a list of corporations registering in the state that\n\nlist farming or ranching or owning or leasing any interest in land\n\nto be used in the business of farming or ranching at least weekly.","path":["OK Code","Title 18"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os18.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9d92613cbe8c1c50be136fbabba8de6fe4c9415e0c24b899f9470f31c52480fb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-18-18-912","next":"us-ok/okla.-stat.-tit.-18-18-952"},"notice":"GroundRules: Original legal text. Not legal advice."}