Oklahoma § 36-1642 - Injunctions - Voting of securities prohibited Sequestration of voting securities

§ 36-1642. Injunctions - Voting of securities prohibited Sequestration of voting securities

A. Whenever it appears to the Commissioner that any insurer or

any director, officer, employee or agent thereof has committed or is

about to commit a violation of this act or of any rule, regulation

or order issued by the Commissioner hereunder, the Commissioner may

apply to the district court for the county in which the principal

office of the insurer is located or if the insurer has no office in

this state then to the district court for Oklahoma County for an

order enjoining the insurer or director, officer, employee or agent

thereof from violating or continuing to violate this act or any

rule, regulation or order, and for such other equitable relief as

the nature of the case and the interest of the insurer's

policyholders, creditors and shareholders or the public may require.

B. 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 act or of any

rule, regulation or order issued by the Commissioner hereunder may

be voted at any shareholder's 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 any such

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 act or of any rule, regulation or order issued by

the Commissioner hereunder, the insurer or the Commissioner may

apply to the district court for the county in which the insurer has

its principle place of business to enjoin any offer, request,

invitation, agreement or acquisition made in contravention of

Section 3 of this act or any rule, regulation or order issued by the

Commissioner thereunder 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 such other equitable relief as the

nature of the case and the interest of the insurer's policyholders,

creditor and shareholders or the public may require.

C. In any case where a person has acquired or is proposing to

acquire any voting securities in violation of this act or any rule,

regulation or order issued by the Commissioner hereunder, the

Oklahoma Statutes - Title 36. Insurance

district court for Oklahoma County or the district court for the

county in which the insurer has its principal place of business may,

on such notice as 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 such order as may be appropriate to effectuate the

provisions of this act. For the purposes of this act the situs of

the ownership of the securities of domestic insurers shall be deemed

to be in this state.

Added by Laws 2017, c. 350, § 12, emerg. eff. May 31, 2017.