tag: dividend

Most of Hungary’s family-owned small and medium-sized enterprises are made up of a single business, typically a limited liability company (Kft.), but in the higher echelons of the SME sector they tend to operate as groups comprised of several companies. How are these company groups formed and what is the rationale behind them? When should you start to establish a company group?

For many, the summer months bring to mind sunny beaches, mouth-watering Mediterranean cuisine, colourful buildings along Portuguese streets, and cities that offer memorable cultural experiences... Yet few are aware that, beyond drawing in tourists, because of their tax systems, popular holiday resorts are also attractive destinations for affluent, well-to-do foreigners - often for periods of time longer than that of a mere summer adventure.

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.

The general meeting of a company can now lawfully amend its previously adopted resolutions. This is especially good news for those shareholders who wish to withdraw extra dividend from their subsidiary mid-year.

While dividends are the result of a happy process, namely the profitable operation of one’s business, the restrictions and difficulties associated with dividend payment have always given grounds for frustration. Particularly troublesome is the treatment of dividends in the course of corporate acquisitions, as the buyer and the seller need to elaborate special techniques for sharing the dividends among themselves.