Prohibition of the exercise of voting rights

(1) The supervisory authority may prohibit the holder of a qualifying holding, and the undertakings through which its qualifying holding is held, from exercising the voting rights, and may order that the interests may be disposed of only with its consent, where
1. the conditions for a prohibition order under section 18(1) or (2) are met,
2. the holder of the qualifying holding has failed to comply with its duty under section 17(1), first sentence, points 1 or 2, or second sentence, point 1, in conjunction with the third sentence, to inform the supervisory authority in advance or without delay, and has not made up for that failure within a time limit set by the supervisory authority,
3. the holding has been acquired or increased other than within the time limit set under section 18(3), fourth sentence, or despite an enforceable prohibition under section 18(1) or (2),
4. the holder of the qualifying holding has completed the acquisition or increase of the holding within the assessment period under section 17(4), or
5. the holder has failed to comply with an enforceable order under section 18(2a).
(2) In the case of a prohibition under subsection (1), the court at the seat of the insurance undertaking must, upon the application of the supervisory authority, the insurance undertaking, or a person holding an interest in it, appoint a trustee to whom it transfers the exercise of the voting rights. The trustee must, in exercising the voting rights, have regard to the interests of a sound and prudent management of the insurance undertaking. Beyond the measures under subsection (1), the supervisory authority may instruct the trustee to dispose of the interests, insofar as they constitute a qualifying holding, where the holder of the qualifying holding does not demonstrate to the supervisory authority, within a reasonable time limit set by it, a reliable acquirer; the holders of the interests must cooperate to the extent necessary in the disposal. Where the conditions of subsection (1) have ceased to apply, the supervisory authority must apply for the revocation of the trustee's appointment. The trustee is entitled to reimbursement of reasonable expenses and to remuneration for his or her activity. The court determines the expenses and the remuneration upon the trustee's application; further appeal against the determination of remuneration is excluded. The insurance undertaking and the qualifying holding holder concerned are jointly and severally liable for the costs arising from the appointment of the trustee, and for the expenses and remuneration to be granted to the trustee. The Federal Government advances the expenses and the remuneration. In the case of negligent conduct, the trustee's liability to compensate is limited to EUR 1 million. Where the undertaking is a stock corporation whose shares are admitted to trading on a regulated market, the liability to compensate is limited to EUR 50 million.
(3) In the cases under subsection (1), the supervisory authority may also order an undertaking through which the qualifying holding is held not to comply with instructions of the holder of a qualifying holding who holds a participation in the intermediary undertaking.