The Curia has provided indication in its decision of 2017, what the court can investigate upon approval of the composition agreement. The Bankruptcy Act declares that the composition may not include provisions, which are clearly and remarkably unfavourable or unreasonable regarding all creditors or certain group of creditors.
As from 1 July 2017, Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation Proceedings (“the Bankruptcy Act”) will be amended on several points. One of the essential purposes of the legislative amendment was to specify certain provisions, which cause problems in the application of law, thus the relevant rules for requests for payment and disputing the claim which the creditor intends to enforce against the debtor have also been arranged more logically and specified.
The question of commercial nature is essential for the assessment whether an activity shall be deemed to be as financial service activity, thus shall be subject to authorisation or not. According to the relevant provisions pursuing a specific activity is exclusively deemed to be a financial activity (thus for example acceptance of deposits, granting of loans and credits, mediation of financial services, purchase of claims etc.) if the activity is pursued on a commercial basis.
In the followings, we seek to introduce widespread bad practices in the field of employment law, which may present a risk for undertakings due to their lawful nature. Employment law has plenty of such fields. Its primary reason is that this area of law seems to be very simple at the first sight, thus in many cases no suspicion arises at the time of their choice.
In the event of credit facilities requested for vehicle purchase, it is a standard practice that the investor has the prohibition of alienation and encumbrance registered in the official register in order to secure the loan agreement, or s/he also keeps in his/her possession the vehicle registration certificate as long as the debtor has not fulfilled his/her obligations arising from the loan agreement.
The freedom of cooperation between undertakings affects the basic interests of undertakings. The different forms of cooperation help to harmonise the complex parts of the process of sales. Why is price maintenance still penalised by the Hungarian Competition Authority? The rules of competition law basically wish to hinder the conclusion of agreements restricting competition since such agreements are to the detriment of unrelated parties and confers advantage on the parties.
The Civil Department of the Curia adopted on 6 February 2017 the summary report drawn up by the jurisprudence analysing working group of the Civil Department of the Curia in connection with the jurisprudence analysis on the liability of executive officers vis-á-vis creditors. As it is well-known, the new Civil Code amended the liability of executive officers on many points and it was capable of being known following the entry into force of the law that only jurisprudence will be able to decide on some open questions that remained unanswered by legislation.
If the relevant economic operator thinks during the public procurement procedure that the tenderer has acted unlawfully vis-á-vis it, then the first thing that comes to its mind is to initiate a so-called preliminary dispute resolution. This way, it may indicate its problem fast to the contracting authority that is obliged to examine the case with the greatest care. The requesting party must pay attention to the golden rules regarding applications for public procurement, and to meet the deadline and formal requirements.
In the event of financing constructions, it may often arise that foreign parent companies do not wish to give a guarantee for the debts of their indebted subsidiaries, but are willing to issue a so-called comfort letter (letter of endorsement, statement of confirmation). However, the legal institution of the comfort letter is not included in the Civil Code, so the question arises whether the obligation contained therein is enforceable at all under the Hungarian law or not.
Act CXXXVIII of 2007 on Investment Firms and Commodity Dealers, and on the Regulations Governing their Activities (“Investment Enterprises Act”) includes special provisions for the case of liquidation of investment firms. Under Section 136 of the Investment Enterprises Act, financial instruments deposited by clients with, and registered by, investment firms, the instruments owned by, or due to, the clients, as well as instruments forming the object of commodity market services, kept on the accounts maintained for the clients do not form part of the assets under liquidation, during the course of liquidation of investment firms. The investment firm is obliged to take prompt measures to provide the instruments to the clients regardless of the liquidation proceedings.
