(1) No domestic member company of a business group subject to limitations on cross shareholding which has secured a shareholding in an affiliate forming circular shareholding, shall exercise its voting rights in shares of an issuing company in the group of circular shareholding companies, which it has acquired or owned as of the date of designation of the business group subject to limitations on circular shareholding.
(2) Paragraph (1) shall not apply where the existing circular shareholding is eliminated as one of the other domestic member companies of the group of circular shareholding companies disposes of shares it has acquired or owned in an issuing company.