[ESTABLISHING A BUSINESS ENTITY IN HUNGARY]
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seller and the purchaser. The purchase of the business quota must be notified to the managing director of the company which, upon such notification, register the new quotaholder in the members’ list of the company. Business quotas can also be subject to in-kind contributions. In this case, the consideration of the provided business quotas is ownership stakes in the receiving company.
elected by the members’ meeting. The current regulations enable the companies to decide whether the managing directors should act individually concerning the operative day-to-day decisions of the company or to form a body of the managing directors. The Civil Code also allows legal entities and not just natural persons to be elected as managing directors.
3.8 Supervisory board
3.6 Supreme body
The election of a supervisory board is only mandatory if the number of full- time employees of the limited liability company exceeds 200 on annual average.
The supreme body of the limited liability company is called the members’ meeting which must be convened by the managing director. The members’ meeting has a quorum if at least half of the eligible votes are represented. If the articles of association permit so, the members’ meeting may be held by electronic means of communication. The decisions falling within the scope of the members’ meeting may also be made in a written form, without holding a meeting. Generally, the decisions of the members’ meeting are passed with a simple majority of votes, although the Civil Code also requires that certain strategic decisions must be resolved with a qualified (75%) majority. The members may adopt higher majority requirements for certain decisions in the articles of association of the company. Executive officers
3.9 Auditor
The appointment of an auditor is only mandatory if the company’s yearly revenues exceed HUF 300 million or the company employs more than 50 employees or if the company is obliged to prepare a consolidated financial statement. The auditor is elected by the supreme body of the company for a maximum term of 5 (five) calendar years starting from the date of the appointment. 3.10 Online established limited liability company Starting from 1 August 2022, the citizens and entities registered in EU member states are entitled to establish a special type of limited liability company. The real difference is that such companies can only be established entirely with cash contributions, however the procedure relating to the signing of the corporate documents is much easier.
3.7 Managing directors
The executive officers of a kft. are called managing directors. The managing directors are, generally,
ILN Corporate Group – Establishing a Business Entity Series
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