§ 26.1-10-08 — Injunctions - Prohibitions against voting securities - Sequestration of voting securities

North Dakota § 26.1-10-08

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-10: Insurance Holding Company Systems

Text

voting securities.
1. 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
chapter or of any rule or order issued by the commissioner under this chapter, 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 principal office in this state then to the
district court of Burleigh County for an order enjoining the insurer or the director,
officer, employee, or agent thereof from violating or continuing to violate this chapter or
any rule or order, and for any 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.
2. A security which is the subject of any agreement or arrangement regarding acquisition,
or which is acquired or to be acquired, in contravention of this chapter or any rule or
order issued by the commissioner hereunder may not be voted at any shareholders'
meeting or 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 any action taken at the meeting is not invalidated by
the voting of those 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 this chapter or any rule or order issued by the
commissioner hereunder, the insurer or the commissioner may apply to the district
court of Burleigh County or to the district court of the county in which the insurer has
its principal place of business to enjoin any offer, request, invitation, agreement, or
acquisition made in contravention of section 26.1-10-03 or any rule 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 any 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.
3. When a person has acquired or is proposing to acquire any voting securities in
violation of this chapter or any rule or order issued by the commissioner hereunder, the
district court of Burleigh County or the district court of the county in which the insurer
has its principal place of business may, on the notice the court deems appropriate and
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 any orders
with respect as may be appropriate to effectuate this chapter.
4. Notwithstanding any other provision of law, for the purpose of this chapter the site of
the ownership of the securities of domestic insurers is deemed to be in this state.