2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 44 - Insurance Holding Company System Regulatory Act (§§ 4401 — 4414) › § 4410 - 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 the provisions of this chapter or of any rule, regulation or order issued by the Commissioner hereunder, the Commissioner may apply to the corresponding court for the jurisdiction in which the principal officer of the insurer is located for an order enjoining the insurer or director, officer, employee, or agent thereof from violating or continuing to violate the provisions of this chapter or any rule or regulation and order, for such other equitable relief as the nature of the case and the interest 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 or order issued by the Commissioner hereunder may be voted at any shareholder’s meeting, or may be counted for quorum purposes. 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 any such 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 Puerto Rico 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 or order issued by the Commissioner hereunder; the insurer or the Commissioner may apply to the court for the jurisdiction in which the insurer has its principle place of business to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of § 4403 of this title 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 such other equitable relief as the nature of the case and the interest of the insurer or the public’s policyholders, creditors, and shareholders 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 or order issued by the Commissioner hereunder, the corresponding court for the jurisdiction in which the insurer has its principal place of business may, on such notice as 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 order as may be appropriate to effectuate the provisions of this chapter.
Notwithstanding any other provisions of law, for the purposes of this chapter Puerto Rico shall be deemed the situs of the ownership of the securities of domestic insurers.
History —Ins. Code, added as § 44.100 on Mar. 7, 2012, No. 51, § 1, eff. 30 days after Mar. 7, 2012.