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tag: corporate governance

The KMRP – a new alternative to rewarding management

Anilla Gondi | 9 December 2021
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Anilla Gondi

Tax-efficient forms of remuneration, serving at the same time, as a means of motivating management have never been more popular. And the range of options available for doing this has expanded this summer to include what’s known as a Special Employee Co-Ownership Program (“KMRP” in Hungarian), a vehicle that can be used for in certain situations that cannot be handled in the context of an Employee Part-ownership Program, MRP. In addition, KMRPs are an excellent vehicle for implementing management buyouts. 

One member – multiple quotas, repeated general meeting in 1 hour – constraints in company law are loosening

Ágnes Bejó | 21 September 2021
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Ágnes Bejó

Since 2014, the “new” Civil Code has allowed companies to deviate from statutory rules in terms of their operation and organization. Up until now, however, it wasn’t clear what was included and what wasn’t: what they could actually deviate from and what they had to adhere to. A new amendment expected to enter into force in January next year will clear the rules up while also easing them off at the same time, thus increasing Hungary’s competitiveness in terms of company law as well.

Ban from management – when the superweapon backfires

Dániel Veres | 26 April 2021
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Dániel Veres

“The tax number of one of my companies was deleted due to some blunder, but we corrected it” – so begins a widely-known and innocent story that could happen to anyone. Then we realise in terror that due to this “blunder”, the Court of Registration refuses to register our company, or that the tax authority wants to delete the tax number of one of our existing companies. Could this have been avoided? What can be done?

Is the confusion surrounding emails finally coming to an end?

Ágnes Bejó | 24 June 2020
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Ágnes Bejó

To this day, the domestic legal system has remained silent on how contracts concluded by email should be treated. However, legislation recently adopted in relation to the COVID-19 pandemic explicitly allows communication via email between a company and its private-individual members. Could this be the first step towards a more comprehensive legal acceptance of emails?

Infected deals

Ágnes Bejó | 29 April 2020
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Ágnes Bejó

Everything that used to be simple and straightforward when concluding or completing M&A transactions poses major challenges to market participants in today’s crisis circumstances. New legal and technical solutions have been designed to overcome these difficulties, some of which are expected to remain with us even after the crisis.

Under threat of insolvency? The changing responsibilities of the CEO

Péter Gyimesi | 15 April 2020
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Péter Gyimesi

The impending economic crisis is expected to upset the financial position of many businesses. At these companies, the responsibilities of the company manager will also change: in a near-bankruptcy situation, the manager is obliged to take into account not only the interests of the company but those of the creditors as well. But what is simple on paper is not so straightforward in practice.

TOP 5 aspects making company establishment easy

Ágnes Bejó | 20 January 2020
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Ágnes Bejó

Do you need a company to be established in Hungary? You will find below some hints and tips that will make your life easier.

Company group therapy: when and why should we transform our business into a company group?

István Csővári | 9 January 2020
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István Csővári

While a typical small or medium-sized family business consists of a single company, large enterprises tend to work in the form of a company group, made up of numerous companies. How do company groups form and what justifies their formation? When is it worth establishing a company group? These are the questions we seek to answer.

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Who is this blog addressed to?

The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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