KRS 304.37-150: Voting rights of holder of security acquired in contravention of chapter

or action of commissioner -- Legal actions to enjoin voting and to seize or

sequester security.

(1) 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, administrative regulation, or order issued

by the commissioner may be voted at any shareholders' meeting, or may be counted

for quorum p urposes, 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 contravent ion of the provisions of this chapter or of any rule, administrative

regulation, or order issued by the commissioner, the insurer or the commissioner

may apply to the Circuit Court for 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 KRS 304.37 -130 or any other provision of this chapter, or

any rule, administrative regulation, or order issued by the commissioner to enjoin

the voting of any securit y so acquired, to void any vote of the security already cast

at any meeting of shareholders, and for any other equitable relief as required by the

nature of the case and the interest of the insurer's policyholders, creditors,

shareholders, or the public.

(2) In any case where a person has acquired or is proposing to acquire any voting

securities in violation of this chapter or any rule, administrative regulation, or order

issued by the commissioner, the Circuit Court for Franklin County or the Circuit

Court for the county in which the insurer has its principal place of business may,

upon notice 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 indirec tly by the person, and issue the appropriate order to effectuate the

provisions of this subtitle.

(3) 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.