§ 27-1-9-10 — Hearing on petition of members or policyholders of mutual company in opposition to merger or consolidation; revocation of approval

If not less than five percent (5%) of the
members or policyholders in a mutual corporation who did not vote in
favor of such merger or consolidation at the meeting at which the
agreement of merger or consolidation was adopted by the members or
policyholder of such corporation shall, at any time within thirty (30)
days after the filing of the affidavit of notice of the adoption of the
agreement of merger or consolidation as provided for in sections 3 and
4 of this chapter, file a petition with the department for a hearing upon
the adoption of such agreement or merger or consolidation, the
department shall order a hearing upon said petition and give notice
fixing the time and place of such hearing to the corporations which are
parties to the merger or consolidation fifteen (15) days before the date
of such hearing. The company whose policyholders file such petition
shall give notice by mail to each member or policyholder of such
company, at least ten (10) days before such hearing. At the time and
place fixed in such notice, or at the time or times and place or places
to which such hearing shall be adjourned, the commissioner shall
proceed with the hearing and make or order such examination into the
affairs and condition of each of such corporations as he may deem
proper. The commissioner shall have the power to summon and compel
the attendance and testimony of witnesses and the production of books
and papers before him at such hearing. Any member or policyholder,
as the case may be, of the corporation so petitioning may appear before
the commissioner and be heard with reference to said contract. If, upon
such hearing being had, the commissioner is not satisfied that the
interests of the members or policyholders, as the case may be, of such
company are properly protected, or if he finds that any reasonable
objection exists to such contract, he shall revoke the approval already
given, and the said agreement of merger or consolidation shall
thereupon become null and void. The commissioner shall have like
power to revoke any approval of any such agreement of merger or
consolidation if any officer, director, or employee of either corporation
party to such agreement of merger or consolidation shall, after
reasonable notice, fail or refuse to attend and testify at such hearing, or
to produce any books or papers called for by said commissioner.
Formerly: Acts 1935, c.162, s.124; Acts 1941, c.115, s.6. As
amended by P.L.252-1985, SEC.45.