The conference on preparation for capital investments was held on 3 February 2017 as a part of the conference series organised by KRS Attorneys-at-Law. Investors and advisors reported on their practical experiences relating to preparation for capital investments at the successful conference with the participation of nearly 50 investors and SME’s.
More than 60,000 companies must increase their registered capital till 15 March. Thousands of undertakings will be probably dissolved because they cannot or do not intend to fulfil this requirement. According to the Ministry for Justice, companies will not be granted an additional time limit, but according to the attorney companies are allowed to provide cash contribution even decades later.
The Hungarian Competition Authority occasionally analyses the market in order to facilitate the preparation for its tasks more effectively. At this time, it may also involve an external expert and analyses the impact of the market processes and the market practice in a priority sector on the competition. The most essential consequence of the market analysis is that if the Authority finds any indication that the competition has been restricted in a particular sectoral market, it will launch a so-called sectoral inquiry to assess the market.
Under Council Directive 89/391/EEC on the introduction of measures to encourage improvements in the safety and health of workers at work, employers need to discuss all questions regarding safety and health at work with employees and their representatives. Its implementation appears in the provisions of Act XCIII of 1993 on Labour Safety (Mvt.), which specify this general requirement. These statutory requirements impose countless obligations on employers and grant rights to employees.
The amendments, entered into force on 1 January 2017, of the Act CLV of 1997 on Consumer Protection entail significant changes for electronic commercial service providers. On the one hand, in case of repeated infringement by such service providers, the rate of consumer protection fines to be imposed was increased; on the other hand, the database of companies liable for serious infringement will be established and become publicly available.
The Curia in its decision of 2016 examined the date when the debtor may dispute the claim and the invoicing obligation of the creditor, and drew essential conclusions in connection with the fact as to when liquidation can be ordered against the debtor.
The question may often arise on the side of the employer in the practice whether the loss of confidence in connection with an employee may provide a ground for termination of employment relationship with immediate effect. According to the relevant legislative provisions, employees, among others, are required to work personally, with expertise and diligence generally expected from them, according to the rules, requirements, instructions and customs relating to their job, furthermore to behave in a way honouring the trust necessary to perform their job.
From 2017 leasing companies performing real estate financing must also undertake to ensure as a condition of favourable duty of 2% that the lease agreement is performed. As of 1 January, the Act on Duties implicitly increased by 1% the former favourable duty rate of 2% applicable to closed-end lease agreements.
Numerous questions had already arisen in connection with capital decrease under the effect of the Act on Business Associations, on which the legislator did not give answers upon the entry into force of the new Civil Code. Thus, it remained among others unclear when a communication must be published twice in connection with the capital decrease or when the creditor protection proceedings must be conducted. The recent judicial practice answers numerous related questions; however, it also raises some new issues which have remained unaddressed.
In accordance with the applicable statutory regulations, private limited insurance companies (public interest entity) and reinsurance companies or public insurance companies and reinsurance companies are required to operate an audit committee of at least 3 members, the members of which shall be elected by the supreme body (general meeting) from the members of the board of directors or the supervisory board.
