News | Budapest

16
Apr

The new Hungarian Civil Code (hereinafter: new CC) has defined the stipulations regarding who is allowed to extend guarantees – a form of collateral – under Hungarian Civil Law. According to the new rules, it is clear, that all legal entities – except consumers – may offer guarantees. The new CC also lists and amends the rules for offering guarantees. ...

11
Feb

The new Hungarian Civil Code (hereinafter referred to as: “new CC”), effective since March 15, 2014, does not include the legal institution of “compensation for non-material damages” which previously was regulated under indemnification rules. At the same time “restitution” was introduced to sanction violations of personality rights. Restitution is applicable to violations committed after the new CC’s entry into force. Compensation ...

21
Jan

Have you considered how your limited liability company will fulfil the minimal equity capital of 3,000,000.- HUF (approx. 9640 €) obligation prescribed by the new Hungarian Civil Code? Are you currently completing your 2014 accounting records? In our most recent client alert, we cover how companies may be able to use profit-after-tax from the 2014 business year to cover the ...

17
Dez

Both the previous and the new Hungarian Civil Codes specifically define so-called “debt recovery cost allowance” regarding business-to-business contracts. In accordance with the provisions of the new Hungarian Civil Code, such contracts may not exclude recovery cost allowance and may not set the allowance at an amount lower than the legal limit. According to Paragraph (2) of Section 6:155. § ...

04
Nov

Companies use trademarks to distinguish themselves and their goods or services in the vast and challenging sea of competitive markets. Trademarks have become a symbol of quality and a tool to encapsulate value. By building on consumer confidence, they are a sign of a company’s goodwill and a means for building customer brand loyalty. Consumers come to emotionally connect with ...

30
Sep

Following we would like to provide an overview of significant rules on executive officer liability towards third parties. The topic is currently hotly debated due to recent changes. Not everyone agrees on how the new regulations should be interpreted and applied and therefore further changes should be expected as court decisions and additional legislation clear up the ambiguity. New ...

06
Aug

Statutes of Limitations can play a significant role when a party seeks enforcement of claims.  The more time that passes, the more difficult it can be to prove a claim. Documents get lost and who said or did what becomes less clear. For claims with no Statutes of Limitations set by law, the courts must determine the claim within the ...

16
Jun

The new Hungarian Civil Code’s stipulations regarding the liability of managing directors have unleashed some heated debate. Our Budapest team has put together a short overview to help you get an initial impression of the most significant changes: Contractual Limitation of Liability The Hungarian rules on business companies permit derogation. Therefore, in cases involving non-contractual liability, parties – the company and the managing director(s) – may, ...

07
Apr

The new Civil Code of Hungary entered into force on March 15, 2014 and introduces many changes including new provisions on the liability of executive officers. The new law extends the liability of corporate executives to include not only liability towards the company (for breach of contract) but also towards third parties (based on liability arising from non-contractual damages). Furthermore, the Code ...

31
Mrz

We are delighted to announce that our Budapest Office has moved to a new location to better serve you. You will now find us (as of 24 March 2014) in the reputable XII district of Budapest in a new building designed by the famous Hungarian architect, Kós Károly.  Our new address is: Csaba utca 15. 1122 Budapest Hungary Telephone numbers and e-mail addresses remain unchanged.