Vermont § 3689 - Injunctions; prohibitions against voting securities; sequestration of voting securities

§ 3689. Injunctions; prohibitions against voting securities; sequestration of voting securities

• (a) Injunctions. 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
  subchapter or of any rule, regulation, or order issued by the Commissioner hereunder,
  the Commissioner may apply to the Superior Court for the county in which the principal
  office of the insurer is located or if such insurer has no such office in this State
  then to the Superior Court for Washington County for an order enjoining such insurer
  or such director, officer, employee, or agent thereof from violating or continuing
  to violate this subchapter or any such rule, regulation, or order, and for such other
  equitable relief as the nature of the case and the interests of the insurer’s policyholders,
  creditors, and shareholders or the public may require. (b) Voting of securities, when prohibited. No security that is the subject of any agreement regarding acquisition, or that is
  acquired or to be acquired, in contravention of the provisions of this subchapter
  or of any rule, regulation, or order issued by the Commissioner hereunder 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 such securities were not issued and outstanding; but no action taken at
  any such meeting shall be invalidated by the voting of such 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 subchapter or of any rule, regulation, or order issued by the
  Commissioner hereunder the insurer or the Commissioner may apply to the Superior Court
  for the county in which the insurer has its principal place of business or to the
  Superior Court for Washington County to enjoin any offer, request, invitation, agreement,
  or acquisition made in contravention of section 3685 of this title 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 such security already
  cast at any meeting of shareholders, and for such other equitable relief as the nature
  of the case and the interests of the insurer’s policyholders, creditors, and shareholders
  or the public may require. (c) Sequestration of voting securities. In any case where a person has acquired or is proposing to acquire any voting securities
  in violation of this subchapter or any rule, regulation, or order issued by the Commissioner
  hereunder, the Superior Court for the county in which the insurer has its principal
  place of business or the Superior Court of Washington County 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 such person, and issue such orders with respect thereto as may be appropriate to
  effectuate the provisions of this subchapter. Notwithstanding any other provisions
  of law, for the purposes of this subchapter, the situs of the ownership of the securities
  of domestic insurers shall be deemed to be in this State. (Added 1971, No. 72, § 2; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)