Under what condition can the management board instruct cash settlement instead of physical delivery of stock options?

The management board can instruct cash settlement instead of physical delivery of stock options primarily to maintain orderly market conditions. This measure helps ensure that the market functions smoothly and efficiently, particularly during times of heightened volatility or unusual trading activity. By opting for cash settlement, the management board can mitigate potential disruptions that might arise from physical deliveries, such as logistical issues or mismatches between supply and demand that could negatively impact market stability. This proactive approach to preserve an orderly market allows for greater liquidity and reduces the risk of systemic issues that could affect traders and investors alike.