Open AccessThe Status of the Limited Liability Company since the New Hungarian Civil Code Came into Effect
Author(s) -
Tekla Papp
Publication year - 2020
Publication title -
central european journal of comparative law
Language(s) - English
Resource type - Journals
eISSN - 2732-1460
pISSN - 2732-0707
DOI - 10.47078/2020.1.147-178
Subject(s) - limited liability , limited liability partnership , liability , limited company , business , parent company , perspective (graphical) , joint stock company , civil code , accounting , industrial organization , strict liability , subsidiary , finance , law , political science , computer science , multinational corporation , artificial intelligence
Historically, the form of the limited liability company was first introduced in Hungary by Act V of 1930. This type of company, which is equipped with all the advantages of members in a limited liability, was born out of the relevant necessity in the economy. However, it is quite flexible in its nature, could be established easily and demonstrates a simpler organizational structure than a company limited by shares. Therefore, the limited liability company fits within the general frame of small and medium enterprises, and is the main and most popular form of a company in Hungary. This paper gives an overview of the characteristics, regulations, foundation, organization, minority rights, business share, members and managing directors’ liabilities in Hungarian limited liability companies from a regulatory and practical perspective.