215 ILCS 5/131.23
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article VIII 1/2 - Insurance Holding Company Systems

 (from Ch. 73, par. 743.23)Sec. 131.23. Injunctions; prohibitions against voting securities; sequestration of  voting securities.(1) Whenever it appears to the Director that any company or any  director, officer, employee or agent thereof has committed or is about to  commit a violation of this Article or of any rule, regulation, or order  issued by the Director hereunder, the Director may apply to the Circuit  Court for the county in which the principal office of the company is  located or to the Circuit Court for Sangamon County for an order enjoining  the company or the director, officer, employee or agent thereof from  violating or continuing to violate this Article or any rule, regulation or  order, and for any other equitable relief as the nature of the case and the  interests of the company's policyholders, creditors or the  public may require. In any proceeding, the validity of the rule, regulation  or order alleged to have been violated may be determined by the Court.(2) No security or shareholder's or policyholder's proxy which is the subject of any agreement or arrangement  regarding acquisition, or which is acquired or to be acquired, in  contravention of this Article or of any rule, regulation or order issued by  the Director hereunder 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 securities shall be taken as though such  securities (including securities that may be voted pursuant to such proxies) were not issued and outstanding; but no action taken at any such  meeting may be invalidated by the voting of such securities or proxies, unless the  action would materially affect control of the company or unless any court  of this State has so ordered. If the Director has reason to  believe that any security or shareholder's or policyholder's proxy of the company has been or is about to be  acquired in contravention of this Article or of any rule, regulation or  order issued by the Director hereunder the company or the Director may  apply to the Circuit Court for Sangamon County or to the Circuit Court for  the county in which the company has its principal place of business (a) to  enjoin the further pursuit or use of any offer, request, invitation,  agreement or acquisition made in contravention of Sections 131.4 through  131.12 or any rule, regulation, or order issued by the Director thereunder;  (b) to enjoin the voting of any security or proxy so acquired; (c) to void any vote  of such security or proxy already cast at any meeting of shareholders; and (d) for  any other equitable relief as the nature of the case and the interests of  the company's policyholders, creditors, or the public may  require.(3) In any case where a person has acquired or is proposing to acquire  any voting securities or shareholder's or policyholder's proxy in violation of this Article or any rule, regulation  or order issued by the Director hereunder, the Circuit Court for Sangamon  County or the Circuit Court for the county in which the company has its  principal place of business may, on such notice as the court deems  appropriate, upon the application of the company or the Director seize or  sequester any voting securities or shareholder's or policyholder's proxy of the company owned directly or indirectly  by such person, and issue any orders with respect thereto as may be  appropriate to effectuate this Article. Notwithstanding any other  provisions of law, for the purposes of this Article, the situs of the  ownership of the securities of domestic companies is deemed to be in this  State.(4) If the Director has reason to believe that any shareholders' or policyholders' proxies  have been or are about to be acquired in contravention of this Article or  of any rule, regulations or order issued by the Director hereunder, the  Director may apply to the Circuit Court for Sangamon County or to the Circuit  Court for the county in which the company has its principal place of business  (a) to enjoin further pursuit or use of any offer, request, invitation,  agreement or acquisition made in contravention of Section 131.4 through  131.12 and (b) for any other equitable relief as the nature of the case  and the interests of the company's policyholders, creditors or the public may require.  (Source: P.A. 98-609, eff. 1-1-14.)