§ 58-19-45. Injunctions; prohibitions against the voting of securities; sequestration of voting securities. - North Carolina Statutes

§58‑19‑45.  Injunctions; prohibitions against the voting ofsecurities; sequestration of voting securities.

(a)        Whenever it appearsto the Commissioner that any person has committed or is about to commit aviolation of this Article or of any rule or order of the Commissioner underthis Article, the Commissioner may apply to the Superior Court of Wake Countyfor an order enjoining such person from violating or continuing to violate thisArticle or any such rule or order; and for such other equitable relief as thenature of the case and the interest of the domestic insurer's policyholders orthe public may require.

(b)        No security that isthe subject of any agreement or arrangement regarding acquisition, or that isacquired or to be acquired, in contravention of the provisions of this Articleor of any rule or order of the Commissioner under this Article, may be voted atany shareholder's meeting nor may be counted for quorum purposes; and anyaction of shareholders requiring the affirmative vote of a percentage of sharesmay be taken as though such securities were not issued and outstanding.  Noaction taken at any such meeting shall be invalidated by the voting of suchsecurities, unless the action would materially affect control of the insurer orunless the courts of this State have so ordered.  If an insurer or theCommissioner has reason to believe that any security of the insurer has been oris about to be acquired in contravention of the provisions of this Article orof any rule or order issued by the Commissioner under this Article, the insureror the Commissioner may apply to the Superior Court of Wake County to enjoinany offer, request, invitation, agreement, or acquisition made in contraventionof G.S. 58‑19‑15 or any rule or order of the Commissioner underthat section to enjoin the voting of any security so acquired, to void any voteof such security already cast at any meeting of shareholders, and for suchother equitable relief as the nature of the case and the interest of theinsurer's policyholders or the public may require.

(c)        In any case where aperson has acquired or is proposing to acquire any voting securities inviolation of this Article or any rule or order of the Commissioner under thisArticle, the Superior Court of Wake County may, on such notice as the courtconsiders appropriate and upon the application of the insurer or theCommissioner, seize or sequester any voting securities of the insurer owneddirectly or indirectly by the person, and issue an order with respect theretoas may be appropriate to effectuate the provisions of this Article. Notwithstanding any other provision of law, for the purposes of this Articlethe sites of the ownership of the securities of domestic insurers are in thisState. (1989, c. 722, s. 1; 1991, c. 681, s. 37; 1993, c.452, s. 34.)