Opinion ID: 2516450
Heading Depth: 1
Heading Rank: 3

Heading: A corporation must be dissolved in a manner prescribed by statute.

Text: ¶ 12 Private corporations are creatures of statute and, like their formation, [9] they can be dissolved only under authority of an act of the legislature. [10] Accordingly, the statutory methods for dissolving a corporation are exclusive, and a corporation cannot be dissolved except in a manner prescribed by statute. [11] ¶ 13 The OGCA recognizes the right of the board of directors and shareholders to act to dissolve their corporation. [12] Under the Oklahoma statutory scheme, the directors of a corporation may adopt a resolution to dissolve the corporation whenever in their discretion the situation warrants dissolution. [13] The resolution to dissolve the corporation by the board of directors must be subsequently approved by a majority of the shareholders. [14] Upon approval of the shareholders, a certificate of dissolution is filed with the Secretary of State. [15] This provision in the OGCA invests in the majority shareholders the right to dissolve the corporation by corporate action. It reflects the long-standing notion that shareholders control the business affairs of the corporation. [16] ¶ 14 The OGCA does not provide grounds for the judicial dissolution of a corporation at the request of a shareholder. [17] In the absence of express statutory authority, a court of equity generally will not exercise jurisdiction over a corporation for the purpose of decreeing its dissolution. [18] ¶ 15 While the OGCA contains no provision authorizing judicial dissolution of a corporation at the request of a shareholder,18 O.S. 1991, § 953(D) [19] permits a minority shareholder in a farming or ranching corporation to sue for dissolution of the corporation. [20] Section 953(D) allows a shareholder holding 25% or more of the shares to seek judicial dissolution of a solvent corporation. It allows the court, in its discretion, to dissolve the corporation against the wishes of the majority shareholders upon a showing of good cause.