521A.9 Injunctions — prohibitions against voting securities — sequestration of voting securities. 1. 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 thischapter or any rule, regulation, or order issued by the commissioner under this chapter, thecommissioner may apply to the district court of the county in which the principal office of theinsurer is located or if such insurer has no such office in this state then to the district court ofPolk county for an order enjoining such insurer or such director, officer, employee, or agentthereof from violating or continuing to violate this chapter or any such rule, regulation, ororder, and for such other equitable relief as the nature of the case and the interests of theinsurer’s policyholders, creditors, and shareholders or the public may require. 2. 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, incontravention of the provisions of this chapter or of any rule, regulation, or order issued bythe ject of any agreement or arrangement regarding acquisition, or which is acquired or to be acquired, incontravention of the provisions of this chapter or of any rule, regulation, or order issued bythe commissioner under this chapter may be voted at any shareholders’ meeting, or maybe counted for quorum purposes, and any action of shareholders requiring the affirmativevote of a percentage of shares may be taken as though such securities were not issued andoutstanding; but no action taken at any such meeting shall be invalidated by the voting ofsuch securities, unless the action would materially affect control of the insurer or unlessthe district court has so ordered. If any insurer or the commissioner has reason to believethat any security of the insurer has been or is about to be acquired in contravention of theprovisions of this chapter or of any rule, regulation, or order issued by the commissionerunder this chapter the insurer or the commissioner may apply to the district court of Polkcounty or to the district court for the county in which the insurer has its principal placeof business to enjoin any offer, request, invitation, agreement, or acquisition made incontravention of Polkcounty or to the district court for the county in which the insurer has its principal placeof business to enjoin any offer, request, invitation, agreement, or acquisition made incontravention of section 521A.3 or any rule, regulation, or order issued by the commissionerunder section 521A.3 to enjoin the voting of any security so acquired, to void any vote ofsuch security already cast at any meeting of shareholders, and for such other equitablerelief as the nature of the case and the interests of the insurer’s policyholders, creditors, andshareholders or the public may require. 3. 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 district court of Polk countyor the district court for the county in which the insurer has its principal place of businessmay, on such notice as the court deems appropriate, upon the application of the insurer orthe commissioner seize or sequester any voting securities of the insurer owned directly orindirectly by such person, and issue such orders with respect ropriate, upon the application of the insurer orthe commissioner seize or sequester any voting securities of the insurer owned directly orindirectly by such person, and issue such orders with respect thereto as may be appropriateto effectuate the provisions of this chapter. Notwithstanding any other provisions of law, forthe purposes of this chapter the situs of the ownership of the securities of domestic insurersshall be deemed to be in this state. [C71, 73, 75, 77, 79, 81, §521A.9]2023 Acts, ch 66, §129Section amended Sat Dec 23 00:52:36 2023 Iowa Code 2024, Section 521A.9 (21, 1)
Iowa Legal Code