State Codes and Statutes
Statutes > Utah > Title-31a > Chapter-16 > 31a-16-11031A-16-110. Enjoining violations -- Voting securities acquired in violation of law orrule.
(1) Whenever it appears to the commissioner that any insurer or any director, officer,employee, or agent of an insurer has committed or is about to commit a violation of this chapteror any rule or order issued by the commissioner under this chapter, the commissioner may applyto the district court of the county in which the principal office of the insurer is located, or if theinsurer has no principal office in this state, then to the Third District Court of Salt Lake County,for an order enjoining the insurer or a director, officer, employee, or agent of the insurer from theviolation. The commissioner may also request other equitable relief which the nature of the caseand the interest of the insurer's policyholders, creditors, and shareholders or the public require.
(2) No security which is the subject of any agreement or arrangement regardingacquisition, or which is acquired or to be acquired, in contravention of the provisions of thischapter or any rule or order issued by the commissioner under this chapter, may be voted at anyshareholders' meeting, or may be counted for quorum purposes. Any action of shareholdersrequiring the affirmative vote of a percentage of shares may be taken as though those securitieswere not issued and outstanding. However, no action taken at that shareholders' meeting isinvalidated by the voting of those securities, unless the action would materially affect control ofthe insurer or unless the district court has ordered that voting invalidates the action. If an insureror the commissioner has reason to believe that any security of the insurer has been or is about tobe acquired in contravention of the provisions of this chapter or any rule or order issued by thecommissioner under this chapter, the insurer or the commissioner may apply to the Third DistrictCourt of Salt Lake County or to the district court for the county in which the insurer has itsprincipal place of business, to enjoin any offer, request, invitation, or agreement of acquisitionwhich is made in contravention of Section 31A-16-103 or any rule or order issued by thecommissioner under this chapter to enjoin the voting of that acquired security. This court ordermay also void any vote of that security if the vote has already been cast at any meeting ofshareholders, and the court may grant other equitable relief which the nature of the case and theinterests of the insurer's policyholders, creditors, and shareholders or the public require.
(3) Upon the application of the insurer or the commissioner, if a person has acquired or isproposing to acquire any voting securities in violation of this chapter or of any rule or orderissued by the commissioner under this chapter, the Third District Court of Salt Lake County orthe district court for the county in which the insurer has its principal place of business may, uponthe notice which the court deems appropriate, seize or sequester any voting securities of theinsurer owned directly or indirectly by that person, and issue orders with respect to that personand those securities which the court considers appropriate to effectuate the provisions of thischapter. For the purposes of this chapter, the situs of the ownership of the securities of domesticinsurers is considered to be in this state.
Amended by Chapter 204, 1986 General Session
