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

Heading: The Sutter family ranch

Text: ¶ 2 For nearly seventy-five years, the Sutter family has operated a cattle ranch on several thousand acres of land in Ellis County. The land was acquired by Owen E. Sutter, the father of L.T. Sutter and the grandfather of Owen C. Sutter, Carol Craiger and Rita K. Walker. [1] Some thirty years ago, L.T. acquired the land and the operation of the ranch from his father. In 1983, L.T. created L-CORN Ranch, Inc., an Oklahoma farming and ranching corporation, and transferred a portion of the ranch land to the corporation. He later transferred other land and assets to L-CORN Ranch. Today, the Sutter family ranch consists of 12,000 contiguous acres of ranch land and the mineral interests and the livestock and equipment involved in the cattle business. ¶ 3 On several occasions in 1992, L.T. Sutter met with his three children, Owen, Carol and Rita, and discussed operational and tax and estate planning considerations for transfer of his estate to his children. All the children agreed to a corporate format to operate the ranch. Accordingly, the family reorganized L-CORN Ranch by filing an amended and restated certificate of incorporation with the Secretary of State in accordance with the Oklahoma General Corporation Act (OGCA). [2] The name was changed to Sutter Ranch Corporation (Sutter Ranch). The amended and restated certificate of incorporation requires compliance with the special statutes governing farming and ranching corporations. [3] It also has a super-majority provision which requires a vote of holders of 75% of the shares to take specific actions affecting the fundamental nature of the corporation. ¶ 4 L.T. Sutter and Owen, Carol and Rita, the owners of all issued and outstanding shares of capital stock in Sutter Ranch, also entered into a shareholders' agreement in September, 1992. The agreement includes a general restriction on the shareholders' right to sell or otherwise dispose of the shares of stock. [4] ¶ 5 From its inception in 1992 until 1996, Owen was president and manager of Sutter Ranch. After the death of L.T. Sutter in 1995, the working relationship among his three children began to deteriorate. In late 1996, Carol and Rita removed Owen as president of Sutter Ranch and named Carol to fill the office. Immediately thereafter, Carol relieved Owen of any and all responsibility in connection with the ranching assets, operations and employees of Sutter Ranch Corporation as well as its mineral leasing activities.