Current Weather
The Spy FM

House Passes New Corporate Governance Law for Chesapeake Energy

Filed by KOSU News in State Impact.
February 13, 2013

The Oklahoma House on Tuesday approved a bill that would change state laws governing how the directors of public companies are elected.

Chesapeake Energy is pushing for the new law, which would undo 2010 legislation the Oklahoma City natural gas giant itself helped write. The previous law mandated staggered elections of directors at public companies, a corporate governance strategy designed to prevent a takeover of a company’s board.

Of course this is exactly what happened at Chesapeake, and the 2010 law unintentionally affected other companies. A legislative fix was rolled out last year to exempt those companies from the law. Now Chesapeake’s new directors want out, too. If a new law isn’t passed, Chesapeake’s new directors say they’ll reincorporate the company in Delaware.

Speaking on the House floor, Rep. Cory Williams, D-Stillwater, said this is a good example of why laws shouldn’t be written for singular corporate interests.

“We’re changing our corporation laws on a yearly basis to situate whoever brings the most lobbyists down to the Capitol,” he said.

The 2010 law unintentionally affected other companies like ONEOK and OG&E. A legislative fix was rolled out last year to exempt those companies from the law.

The House approved HB 1646 on a 70-24 vote. The bill, by Rep. Fred Jordan, R-Jenks, now goes to the Senate for consideration. Two similar measures have been filed in the Senate — SB 249 and 594 — both authored by Sen. President Pro Tem Brian Bingman, R-Sapulpa.

Powered by WPeMatico

Leave a Reply

10AM to 11PM On Point

On Point

On Point unites distinct and provocative voices with passionate discussion as it confronts the stories that are at the center of what is important in the world today. Leaving no perspective unchallenged, On Point digs past the surface and into the core of a subject, exposing each of its real world implications.

Listen Live Now!

11AM to 12PM The Story

The Story

The Story with Dick Gordon brings the news home through first-person accounts. The live weekday program is passionate, personal, immediate and relevant to listeners, focusing on the news where it changes our lives, causes us to stop and rethink, inspires us.

View the program guide!

12PM to 1PM Fresh Air

Fresh Air

This one-hour program features Terry Gross' in-depth interviews with prominent cultural and entertainment figures, as well as distinguished experts on current affairs and news.

View the program guide!

Upcoming Events in your area (Submit your event today!)

Streaming audio and podcasts

Stream KOSU on your smartphone

Phone Streaming

SmartPhone listening options on this page are intended for many iPhones, Blackberries, etc. with low-cost software applications available to listen to our full-time web streams, both News on KOSU-1 and Classical on KOSU-2.

Learn more about our complete range of streaming services

We're perfecting the patient experience - Stillwater Medical Center