2011 Kentucky Revised Statutes Subtitle 37. Insurance Holding Company Systems 304.37.150 Voting rights of holder of security acquired in contravention of chapter or action of commissioner -- Legal actions to enjoin voting and to seize or sequester security.
KY Rev Stat § 304.37.150 (1996 through Reg Sess) What's This?
304.37-150 Voting rights of holder of security acquired in contravention of chapter
or action of commissioner -- Legal actions to enjoin voting and to seize or
sequester security.
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No security which is the subject of any agreement or arrangement regarding
acquisition, or which is acquired or to be acquired, in contravention of the
provisions of this chapter or of any rule, administrative regulation, or order issued
by the commissioner may be voted at any shareholders' meeting, or may be counted
for quorum purposes, and any action of shareholders requiring the affirmative vote
of a percentage of shares may be taken as though the securities were not issued and
outstanding; but no action taken at the meeting shall be invalidated by the voting of
the securities, unless the action would materially affect control of the insurer or
unless the courts of this state have so ordered. If an insurer or the commissioner has
reason to believe that any security of the insurer has been or is about to be acquired
in contravention of the provisions of this chapter or of any rule, administrative
regulation, or order issued by the commissioner, the insurer or the commissioner
may apply to the Circuit Court for the county in which the insurer has its principal
place of business to enjoin any offer, request, invitation, agreement, or acquisition
made in contravention of KRS 304.37-130 or any other provision of this chapter, or
any rule, administrative regulation, or order issued by the commissioner to enjoin
the voting of any security so acquired, to void any vote of the security already cast
at any meeting of shareholders, and for any other equitable relief as required by the
nature of the case and the interest of the insurer's policyholders, creditors,
shareholders, or the public.
In any case where a person has acquired or is proposing to acquire any voting
securities in violation of this chapter or any rule, administrative regulation, or order
issued by the commissioner, the Circuit Court for Franklin County or the Circuit
Court for the county in which the insurer has its principal place of business may,
upon notice the court deems appropriate, upon the application of the insurer or the
commissioner seize or sequester any voting securities of the insurer owned directly
or indirectly by the person, and issue the appropriate order to effectuate the
provisions of this subtitle.
Notwithstanding any other provisions of law, for the purposes of this chapter the
situs of the ownership of the securities of domestic insurers shall be deemed to be in
this state.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1485, effective July 15, 2010. -Amended 2000 Ky. Acts ch. 42, sec. 16, effective July 14, 2000. -- Created 1994 Ky.
Acts ch. 92, sec. 6, effective July 15, 1994.
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