[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
250
The contribution of each member may not be less than HUF 100,000 (approximately EUR 250). The contribution may not necessarily be divisible with HUF 10,000 in opposite to the previous regulation. It is not mandatory to pay up the amount of the registered capital upon the establishment of the Company, however, the payment of dividends and the transfer of business quotas cannot be completed until the payment of the registered capital. The performance of such an obligation can be delayed by two calendar years at most, starting from the incorporation date. Hungarian law also enables the members of a kft. to denominate the registered capital of the respective company in EUR or USD. In such a case, the books of the company must also be kept, and the annual report must be prepared in the same currency.
The size of the business quotas of the different members can, however, be different. Furthermore, one business quota may be held by more than one quotaholder. In such a case, it is considered as a joint business quota and the relating rights may be exercised by the joint representative of the quotaholders. If not provided otherwise, the extent of voting rights, rights to dividend and other membership rights are linked to the capital contribution made by the respective quotaholder.
3.4 Special rights
Special rights can be attached to the business quota of any of the quotaholders. Such special right can, for instance, offer the quotaholder voting preference, dividend preference, liquidation proceed preference or other preferences (i.e., right of the appointment of executive officers) relating to the transfer of business quotas. There are no limitations or restrictions on the extent of such special rights, they are merely subject to the agreement of the quotaholders. freely transferable among the members of the company. However, the members may decide on various restrictions relating to the transferability of the business quotas to third parties, such as pre-emption rights or the requirement for the members’ meeting’s consent. Business quotas may be transferred via a written contract between the
3.3 Membership rights
The membership rights in limited liability companies are represented by so-called „business quotas”. The business quota is a notional concept as it is not embodied in physical or electronic form but is solely registered in the members’ list of the company. The business quota represents membership rights and obligations of each member of the company. In general, each quotaholder has one business quota, however, if there are different rights attached to certain types of business quotas, then the quotaholder is entitled to have more than one business quota in a company.
3.5 Transfer of ownership rights Business quotas are
ILN Corporate Group – Establishing a Business Entity Series
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