Chesapeake Corporate Governance Bill Sent to Governor
A new corporate governance law sought by Chesapeake Energy now awaits Gov. Mary Fallin’s signature.
Final approval from the state Legislature came Wednesday. The measure — House Bill 1646, authored by Rep. Fred Jordan, R-Jenks — reverses 2010 legislation that mandated staggered elections of directors at certain public companies, a corporate governance strategy designed to prevent a boardroom takeover.
Chesapeake Energy helped write the 2010 law, which didn’t protect it from a boardroom shakeup. Chesapeake pushed to reverse the law because the energy company’s new directors — and many of its shareholders — want annual board member elections, a structure in place at most of Chesapeake’s corporate peers.