General principles governing resolution

(1) In taking resolution action, the resolution authority observes the following principles: 1. that shareholders and creditors bear losses to the same extent as they would have borne them in insolvency proceedings that had been opened at the time the resolution order was made, unless this Act provides otherwise; 2. that covered deposits are fully protected; 3. that the costs of resolution are kept to a minimum, and that destruction of value not necessary to achieve the resolution objectives is avoided; 4. that the managers, the members of the supervisory or administrative body, and the members of senior management below board level, of the institution or group entity under resolution are replaced, unless the resolution authority considers their full or partial retention necessary, in the individual case, to achieve the resolution objectives; 5. that the managers, the members of the supervisory or administrative body, and the members of senior management below board level, of the institution or group entity under resolution are required to provide all necessary assistance to achieve the resolution objectives; 6. that the criminal and civil liability of natural and legal persons for the institution's failing or likely to fail while under resolution remains unaffected.
(2) The resolution authority takes resolution action in respect of an institution belonging to a group, in accordance with this Act, in a manner that minimises the adverse effects on group entities and on the group as a whole, and on financial stability in the European Union and in its Member States, in particular in Member States in which group entities operate.
(3) In taking resolution action, the resolution authority informs the works council of the institution or group entity, insofar as this is possible without prejudicing the resolution objectives.