2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 37 - Insurance Holding Company Systems 37.37-150 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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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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