is it easy to do business here? regulations, laws, improvements andrea jadi nemeth 22 march, 2013 -...
TRANSCRIPT
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Is it easy to do business here?Regulations, laws, improvements
Andrea Jadi Nemeth
22 March, 2013 - Budapest
Budapest International Business Center Conference
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Topics
1. Corporate law
2. Employment
3. Innovations and intellectual property
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1. Corporate law
Third book of the new Civil Code (effective from March 15, 2014)
- Seleted topics:
• Freedom to „regulate otherwise”
• The right of representation
• Liability of the executive officer
• Limited liability company:
- starting capital
- board of directors
• Limited companies
- financial assistance
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1.1. Freedom to „regulate otherwise”
– The provisions of the Act can be replaced by alternate rules that better suit the legitimate purpose of the company.
– Shareholders will be allowed to deviate from the provisions of the Civil Code, unless it is forbidden by the law; or it violates the rights of creditors, employees or the minority of
the shareholders; or it hinders the enforcement of the oversight of the legitimate
operation of the company
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1.2. The right of representation
– Restrictions regarding the rights of the representatives will be ineffective towards third parties
unless: the third party had, or should have had knowledge about the limitation (need for approval, or any sort of restrictions)
Therefore: Caution!
Screening of corporate documents is required
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1.3. Liability of the executive officer
– New regime:
The general rule for breach of contracts will be applied for damages caused by the executive officers to their companies
– Executive officers will only be able to avoid liability if the damage was attributable to an: Unavoidable Unforeseeable Outside circumstance
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– Fiduciary Duties: Duty of loyalty Duty of care
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1.4. Further rules of importance
– Limited liability companies
∙ Starting Capital: 3,000.000 HUF
∙ Board of DirectorsAnglo-Saxon model will be available
– Companies limited by shares ∙ Strict rules on financial support according to the Business Associations Act:
LC’s may not provide financial aid (loans, surety ships) if it’s sole purpose is to assist third persons in the acquisition of the company's’ shares.
∙ The New Civil Code:will allow financial support for private limited companies in order to acquire its own shares (only at market rates + financed from its assets); andthe general meeting decided with a 3/4 majority
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2. The new labor law
New Labor Code in Hungary effective since July 1, 2012:
Act I of 2012 on the Labor Code
- Approach
- Termination
- Business transfer
- Liability for damage
- Non-competition obligations
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2.1. Termination
New definitions: Ordinary dismissal dismissal Extraordinary dismissal termination with immediate effect
A selection of changes:
Fixed-term employment can be terminated (under special circumstances) Exclusion of the right of termination for a maximum of one year Maximum notice period 1 year 6 months Incapacity from work no longer bans termination, but the notice period starts
only upon the the employee’s return to work Unlawful termination: compensation for lost wages is caped at an absence fee
of 12 months Employee shall not be entitled to severance pay if the ground for termination:
Is the employee’s behavior are the employee’s non-health-related abilities
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2.4. EmploymentFurther relevant changes
Business Transfer: employee’s consent is not required ↔ but if the new labour conditions cause „excessive grievance” for the employee right for termination with the same consequences as if the employer had initiated the termination.
Minimum Salary: The Government has the right to declare varying minimum level of salary for different types of employees
Liability of employees:
– cap raised to 4 months’ remuneration
– unlimited liability for gross negligence or willful misconduct
Non-competition agreement–maximum term reduced to 2 years
–minimum compensation reduced to 30%
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3. Intellectual Properties, Innovations, data transfer and know-how
The importance of intellectual property Special sectors: pharmaceutical,
transportation, telecom, etc. Separate legislation on patents,
trademarks, copyright, etc. Current regulation in the Civil Code:
Section 86(4):
„Persons shall also be entitled to protection with respect to their economic, technical and organizational knowledge and experience that has pecuniary value.”
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3. Intellectual Properties, Innovations, data transfer and know-how
– According to Wikipedia:
„in the context of industrial property (now generally viewed as intellectual property) know-how is a component in the transfer of technology in national and international environments, co-existing with or separate from other IP rights such as patents, trademarks and copyright and is an economic asset.”
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Closing thoughts…
„Succes is not final, failure is not fatal: it is the courage to continue that counts.”
- Winston Churchill
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Kérdések /Fragen /Questions
Medimpex Building
Vörösmarty tér 4.
H-1051 Budapest
Tel.: +36 (1) 429 4000
Fax: +36 (1) 429 4001
http://www.bpv-jadi.com
Kapcsolat /Kontakt /Contact
Thank you for your attention!
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Irodák /Kanzleien /Offices
BRUSSELS
bpv | HÜGEL
Rond Point Schuman 9, Postbox 14, 4. StockB - 1040 Brussels
http://www.bpv-huegel.com
BUCHAREST
bpv | GRIGORESCU ŞTEFĂNICĂ
33 Dionisie Lupu StreetRO-020021 Bucharest
http://www.bpv-grigorescu.com
BUDAPEST
bpv | JÁDI NÉMETH
Vörösmarty tér 4.H-1051 Budapest
http://www.bpv-jadi.com
BADEN
bpv | HÜGEL
Hauptplatz 9-13A-2500 Baden
http://www.bpv-huegel.com
BRATISLAVA
bpv | BRAUN PARTNERS
Štefánikova 6/ASK-811 05 Bratislava
www: www.bpv-bp.com
PRAGUE
bpv | BRAUN PARTNERS
Ovocný trh 8CZ-110 00 Prague 1
www: www.bpv-bp.com
VIENNA
bpv | HÜGEL
ARES-TowerDonau-City-Str. 11A - 1220 Vienna
http://www.bpv-huegel.com
MÖDLING
bpv | HÜGEL
Enzersdorferstraße 4A - 2340 Mödling
http://www.bpv-huegel.com
http://www.bpv-legal.com
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Köszönöm a figyelmet
Ich danke für Ihre Aufmerksamkeit
Thank you for your attention