The Michigan Senate recently advanced a bill to make it more difficult for outsiders to take over the domestic insurer Fremont Michigan InsurCorp.
The measure, which passed the Senate 27-10 and was sent to the House Insurance Committee, is a response to the attempted hostile takeover of Fremont last year by the Indianapolis-based Steak ‘n Shake Corp.
The bill would require a two-thirds supermajority of shareholders to vote in favor of the sale if the current board of directors opposes being taken over, but only for a domestic insurer with 200 employees or fewer. Now, only a simple majority vote is needed.
Fremont Insurance is located in Fremont which is in the district of Sen. Gerald Van Woerkom, R, who sponsored the bill.
The board of the insurer’s holding company, Fremont Michigan InsuraCorp Inc., last December rejected the $32 million bid by Steak ‘n Shake.
The company writes property/casualty insurance in Michigan, with plans to expand to Wisconsin and other neighboring states.
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