Prohibition of a participation

(1) Where a primary insurance undertaking has a participation in another undertaking that is not subject to supervision, and the participation is, by its nature or extent, capable of endangering the insurance undertaking, the supervisory authority may prohibit the insurance undertaking from continuing the participation, or permit it only on condition that the undertaking has itself audited, at its own expense or at the expense of the insurance undertaking, under section 341k of the Commercial Code and sections 35 and 36 of this Act. Where the undertaking refuses this, or the audit raises concerns about the participation, the supervisory authority must prohibit the insurance undertaking from continuing it.
(2) A member of the management board or supervisory board of the insurance undertaking exercising, or being in a position to exercise, a significant influence over the management of another undertaking is also deemed a participation within the meaning of subsection (1).