§ 20-481.29 — Injunctions; prohibitions against voting securities; sequestration of voting securities

Arizona § 20-481.29

• Jurisdiction: Arizona
• Title 20: Arizona Revised Statutes
• Ch. 2: TRANSACTION OF INSURANCE BUSINESS
• Art. 8: Insurance Holding Company Systems

Text

A. If it appears to the director that an insurer or a director, officer, employee or agent has committed or is about to commit a violation of this article or of a rule adopted or order issued by the director, the director may apply to the superior court in the county in which the principal office of the insurer is located for an injunction and for other equitable relief as the case and the interest of the insurer's policyholders, creditors and shareholders or the public may require. If the insurer has no office in this state, the director may apply to the superior court in Maricopa county.

B. No security that is the subject of any agreement or arrangement regarding acquisition or that is acquired or to be acquired, in contravention of the provisions of this article or of any rule adopted or order issued by the director may be voted at any shareholder's meeting or may be counted for quorum purposes. Any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though these securities were not issued and outstanding. No action taken at any meeting may be invalidated by the voting of these 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 director 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 article or of any rule adopted or order issued by the director, the insurer or the director may apply to the superior court in the county in which the insurer has its principal place of business to enjoin any offer, request, invitation, agreement or acquisition made in violation of this article or any rule adopted or order issued by the director 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 other equitable relief as the nature of the case and the interest of the insurer's policyholders, creditors and shareholders or the public requires.

C. In any case in which a person has acquired or is proposing to acquire any voting securities in violation of this article or any rule adopted or order issued by the director, the superior court in Maricopa county or the superior court in the county in which the insurer has its principal place of business, on notice as the court deems appropriate and on the application of the insurer or the director, may seize or sequester voting securities of the insurer owned directly or indirectly by that person and issue an order as is appropriate to effectuate the provisions of this article.

D. Notwithstanding any other provisions of law, for the purposes of this section the situs of the ownership of the securities of domestic insurers is deemed to be in this state.