Section 5: Exercise of control

I. - The persons referred to in 1°, a of 2°, 4°, 9° and 10° of A of I of Article L. 612-2 shall notify the Autorité de contrôle prudentiel et de résolution of the appointment and reappointment of the managers referred to in Articles L. 511-13 and L. 532-2, within a period set by decree in the Conseil d'Etat. The persons mentioned in 1°, a of 2° and 9° of A of I of Article L. 612-2 shall also notify, under the same conditions, the appointment and reappointment of natural persons, including representatives of legal entities, who are members of their board of directors, supervisory board, management board or any other body exercising equivalent functions.

II. - The organisations covered by the so-called "Solvency II" regime referred to in Articles L. 310-3-1 of the French Insurance Code, L. 211-10 of the French Mutual Code and L. 931-6 of the French Social Security Code, the supplementary occupational retirement funds referred to in Article L. 381-1 of the French Insurance Code, the supplementary occupational retirement mutuals or unions referred to in Article L. 214-1 of the French Mutual Code and the supplementary occupational retirement institutions referred to in Article L. 942-1 of the Social Security Code shall notify the Autorité de contrôle prudentiel et de résolution, within a period set by decree in the Conseil d'Etat, of the appointment and reappointment of the persons who effectively manage the undertaking and the persons responsible for key functions, as referred to in Articles L. 322-3-2 of the Insurance Code, L. 211-13 of the Mutual Code and L. 931-7-1 of the Social Security Code, and of any person called upon to perform equivalent functions.

Undertakings not covered by the "Solvency II" regime referred to in Articles L. 310-3-2 of the French Insurance Code, L. 211-11 of the French Mutual Code and L. 931-6-1 of the French Social Security Code shall notify the Autorité de contrôle prudentiel et de résolution of the appointment and reappointment of the Chief Executive Officer and the Deputy Chief Executive Officers, the sole Chief Executive Officer, the members of the Management Board or the manager, as well as any person called upon to perform equivalent functions, within a period set by decree of the Conseil d'Etat.

III. - The supervisory board of the Autorité de contrôle prudentiel et de résolution may object, within a period set by decree in the Conseil d'Etat, to the appointments and renewals referred to in I and II of this article if it finds that the persons concerned do not meet the conditions of good repute, competence and experience applicable to them or, where they are subject thereto, the conditions of knowledge and obligations provided for in articles L. 511-52 and L. 533-26 of this Code, L. 322-3-2 and L. 356-18 of the Insurance Code, L. 211-13 of the Mutual Code and L. 931-7-1 of the Social Security Code. This decision is taken after the persons concerned have commented on the information provided by the Autorité de contrôle prudentiel et de résolution.

The mandate or function of persons whose appointment or renewal is opposed by the Autorité de contrôle prudentiel et de résolution ceases at the end of a period set by decree of the Conseil d'Etat, following notification of the opposition decision.

I and this III do not apply to the persons and entities referred to in a, b and c of Article L. 512-1-1, including those that have issued securities admitted to trading on a regulated market.

IV. - The undertakings mentioned in 1°, a of 2° and 9° of A of I of Article L. 612-2 and those referred to in B of I of the same article, with the exception of those referred to in 4° and 7° and the vehicles referred to in 8° of the same B, which publish their resolutions in the Bulletin des annonces légales obligatoires, as well as those meeting the conditions set by decree in the Conseil d'Etat, may refer to the Autorité de contrôle prudentiel et de résolution for an opinion on any proposal to appoint or reappoint their senior managers as well as the members of their board of directors, management board and supervisory board.

V. - 1. The supervisory board of the Autorité de contrôle prudentiel et de résolution may oppose the continuation in office of one or more natural persons, including representatives of legal entities, who are members of the board of directors or supervisory board of the persons mentioned in B of I of Article L. 612-2, with the exception of those mentioned in 4°, 7° and the vehicles mentioned in 8°, and who are authorised to carry on their activity if they do not meet the conditions of good repute or the conditions of competence and experience applicable to them. The supervisory board of the Autorité de contrôle prudentiel et de résolution may also, for the same reasons or when the condition of good repute is no longer met, oppose the continuation in office of one or more members of the board of directors, the supervisory board, the management board or any equivalent body, other than the managers mentioned in Article L. 511-13, of the persons mentioned in 4° and 10° of A of I of Article L. 612-2.

The Autorité de contrôle prudentiel et de résolution may require the aforementioned undertakings to submit for its approval a training programme for the members of their board of directors or supervisory board, with regard to the conditions of competence and experience. If the company does not produce the requested training programme or if it does not carry it out within the conditions and deadlines laid down, the Autorité de contrôle prudentiel et de résolution may give formal notice to the company to comply with its obligations.

2. The decisions to oppose the continuation of the mandate referred to in 1 above are taken after the persons concerned and the chairman of the body of which they are members have commented on the information provided by the Autorité de contrôle prudentiel et de résolution.

A decree of the Conseil d'Etat shall specify the conditions of application of this article.