§ 27-35-8. 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
chapter or of any rule, regulation, or order issued by the commissioner under this
chapter, the commissioner may apply to the superior court of Providence County for
an order enjoining the insurer or director, officer, employee, or agent thereof from
violating or continuing to violate this chapter or any rule, regulation, or order,
and for 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 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
chapter or of any rule, regulation, or order issued by the commissioner under this
chapter 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 the securities were not issued and outstanding; but no action
taken at the 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 chapter or of any rule, regulation, or order issued by the
commissioner under this chapter the insurer or the commissioner may apply to the superior
court for Providence County to enjoin any offer, request, invitation, agreement, or
acquisition made in contravention of § 27-35-2 or any rule, regulation, or order issued by the commissioner under that section 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 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 chapter or any rule, regulation, or order issued by the commissioner
under this chapter, the superior court for Providence County may, on such notice that
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 orders as may be appropriate to effectuate the provisions
of this chapter. Notwithstanding any other provisions of law, for the purposes of
this chapter, the situs of the ownership of the securities of domestic insurers shall
be deemed to be in this state.