The amendment entering into force on 21 March 2016 of Act on Credit Institutions and Financial Enterprises introduced the credit counselling service as a new auxiliary financial measure, which requires authorization. However, a number of practical questions have arisen since the amendment as to when certain counselling services fall within the concept of the new service requiring authorization.
The amendment of Act on the Formation and Protection of the Built Environment will enter into force in September, according to which government decree may require liability insurance for construction and building activity to be carried out in a residential building with a total useful floor area of up to 300 square meters. According to the new regulation, the architectural designer and participants in the construction have to have liability insurance for the construction of residential buildings falling within notification requirements instead of construction permit.
Nemzeti Eszközkezelő Zrt. (NET Zrt.) was established in accordance with the action plan for the protection of family homes specified by the Hungarian Banking Association and the Hungarian Government, with the task to purchase the homes of debtors who are most disadvantaged socially. Within this framework, the legislator made Act CLXX of 2011 on the protection of the homes of natural persons unable to fulfil their obligations arising from loan agreement, aimed at finding a solution for the situation of the debtors heavily indebted due to the mortgage loan agreement, which is acceptable both to the creditors, debtors and the State.
There is noticeably less financing opportunity after the end of the allocation period of the JEREMIE initiative on the Hungarian market, at the same time it provides an occasion for the use of the resources of the private sector. However, private investors applying instead of the Jeremie funds functioning in a relatively predictable and well controlled way, contract with very different conditions, thus it is worth considering carefully what resource the company actually needs.
Due to legislative requirements first applicable for the first time to fiscal year started following 16 June 2016, public-interest entities need to review the duration of their existing engagement with their current auditors and, if necessary, to engage a new audit firm.
The local venture capital market has undergone significant developments due to the JEREMIE initiative launched in 2009 because 28 managing authorities participating in the initiative received mandate to pay out subsidy of HUF 131, 5 billion in order to boost the Hungarian SMEs sector. The allocation period just ended on 31 May 2016 but numerous irregularities have been already revealed. The expert of KRS Attorneys-at-Law, Dr. Attila Pintér was questioned about the liability of the managing authorities participating in the initiative and about repayment obligations.
Under the regulation of Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation Proceedings (hereinafter referred to as “Cstv.”), due to the insolvency of so called economic operators specified therein, a multitude of ex-officio proceedings initiated by debtors or creditors are ongoing. Since the economic operators, in many cases, perform their economic activity across borders – and the territory of the European Union is mainly worth mentioning here – it is good to know when and which law shall govern during liquidation proceedings.
Act I of 2012 on the Labour Code provides, among others, protection against termination of employment for the total duration of pregnancy, as well as for a maximum of 6 month from the start of medical treatment relating to human reproduction process. The Labour Code relating to these cases initially ruled that the employee could only refer to the protection ensured by the Labour Code if she informed the employer of the pregnancy or the start of medical treatment relating to human reproduction process prior to the termination notice.
The control of the concentration of companies is aimed at preventing the creation of monopolies by instruments based on competition law. The modern market economy entails the phenomenon of the concentration of capital. The competition law does not wish to prevent its presence but it seeks to regulate and discourage concentrations, which present exceptionally harmful effects on competition.
Point a. of Subsection (1) of Section 294 of the Labour Code includes the definition of young worker. Accordingly, young worker shall mean any worker under the age of 18. In their case, having regard to their age, the law orders the application of more stringent rules. These more stringent rules appear on the establishment and termination of the employment relationship and on the provision of working time and rest period.
