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One member – multiple quotas, repeated general meeting in 1 hour – constraints in company law are loosening
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.
Apart from all its other nasty effects, the coronavirus has shown how unprepared lawyers are. Not long after the outbreak of the virus, it became all too obvious that the “force majeure” clauses traditionally worded along Anglo-Saxon lines were not worth the paper they were written on: they simply weren’t suitable for addressing the kind of problems that were arising in the new situation. Based on what we’ve learnt over the past few months, however, it’s now a lot clearer how a “Covid-proof” contract should be drawn up.