The Status of the Limited Liability Company since the New Hungarian Civil Code Came into Effect

  • Tekla Papp Faculty of State Sciences and International Studies, National University of Public Service, Hungary
Keywords: characteristics, regulation, foundation, organization, minority rights, business share, member's and managing director's liabilities of the Hungarian limited liability company


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.