(1) Where no control agreement exists, the management board of a controlled company is to prepare, in the first three months of the financial year, a report on the relations of the company with affiliated enterprises. The report is to set out all legal transactions that the company has entered into, in the course of the financial year expired, with the controlling enterprise or with an enterprise affiliated with the controlling enterprise, or at the instigation or in the interests of these enterprises, as well as all other measures it has taken or refrained from taking at the instigation or in the interests of these enterprises in the course of the financial year expired. Where legal transactions are concerned, the performance and counter-performance are to be stated, and where measures are concerned, the reasons for which the measure was taken and the benefits and disadvantages it entails for the company are to be stated. Where disadvantages have been compensated, the report is to state in detail in which way the compensation was in fact provided in the course of the financial year or to which advantages the legal claim granted to the company refers.
(2) The report is to comply with the principles of conscientious and faithful accounting.
(3) At the end of the report, the management board is to declare whether, based on the circumstances of which the management board was aware at the point in time the legal transaction was entered into or the measure was taken or refrained from, the company received appropriate counter-performance for each legal transaction and did not suffer a disadvantage by the measure being taken or refrained from. Where the company did suffer a disadvantage, the management board is to declare furthermore whether the disadvantages have been compensated. This declaration also is to be included in the management report.