Directors of a Hungarian Company
Directors of a Hungarian CompanyUpdated on Friday 24th April 2020
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Hungarian company directors
Company directors in Hungary are in charge of the management of the company and conduct their activities in the best interest of the corporation. The company management consists of one or more natural persons who can be held liable for their actions in certain cases.
Hungarian company directors must perform their tasks with diligence and care towards the company, its other members and its employees. Our law firm in Hungary can provide you with specialized assistance if you are a company director in Hungary. Together with our team of experts you will be able to solve any corporate legal matters.
Regulations for company directors in Hungary
Some of the most important laws that control corporate governance and the director’s duties in Hungary are:
- the Corporate Act: refers to the company’s organizational structure;
- the Civil Code;
- the Criminal Code: on economic crimes;
- the Accounting Act, the Bankruptcy Act and other additional Acts.
According to law, the minimum age of a company director in Hungary is over 18 and the individual must have full contractual capacity. There are no restrictions regarding nationality, meaning that foreign investors in Hungary can become company directors. An exception to this rule applies to credit institutions where two members belonging to the board of directors must be Hungarian nationals.
Managing directors are elected by the members of the company during a special meeting. They can also be re-elected without limitation. If you want to open a Hungarian company you should know that there are various provisions for the management requirements according to the type of company. The team of experts from our Hungarian law firm can help you understand the Board composition.
A Hungarian director’s duties and responsibilities
Company directors in Hungary are allowed to take all the necessary decisions for the company. He or she is the legal representative of the company and maintains the relationship to third parties. The director is also the one to appear before courts and other authorities on behalf of the company. However, the company members can decide to grant individual or joint right of representation to the company directors.
According to civil law, company directors in Hungary can bear unlimited personal liability to the company for their actions. A company director can be accused of crimes such as theft or fraud, market manipulation, insider trading or for failure to manage the company accordingly during the insolvency or bankruptcy procedure.
For detailed information about a director’s personal liability in Hungary as well as other issues such as company management, you can contact our Hungarian law firm. Our attorneys can also help you open a bank account in Hungary.