Management and investment

(1) The investment stock corporation with variable capital may appoint an external capital management company corresponding to its object of undertaking. In addition to carrying out general management activity, this company is in particular responsible for the investment and management of the funds of the investment stock corporation with variable capital. The appointment of an external capital management company does not constitute a case under section 36, nor is it to be regarded as an enterprise agreement within the meaning of the Stock Corporation Act. Section 99 applies correspondingly. Section 100 applies correspondingly, with the proviso that the right of management and disposal over the company's assets passes to the depositary for winding-up only where 1. the investment stock corporation with variable capital a) does not convert into an internally managed investment stock corporation with variable capital, or b) does not appoint another capital management company, and 2. this is a) approved by the Federal Institute in each case for retail investment stock corporations with variable capital, and b) notified to the Federal Institute in each case for special investment stock corporations with variable capital. Where another capital management company is appointed, section 100b applies correspondingly.
(2) An internally managed investment stock corporation with variable capital may acquire movable and immovable property necessary for the operation of the investment stock corporation (investment operating assets). It may not fund the acquisition with capital from the issue of investment shares. As a retail investment stock corporation with variable capital, it may raise loans up to a maximum of 10 percent of its company assets, insofar as this is intended to enable the acquisition of immovable property necessary for the exercise of its activity; however, the borrowing, together with the borrowing under section 199, may not exceed 15 percent, or, together with the borrowing under section 221(6), may not exceed 25 percent, of the company's assets.