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 ...
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 ...
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 ...
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, ...