HUNGARY Law and Practice Contributed by: Mihály Barcza and József Bulcsú Fenyvesi Oppenheim Law Firm
Slovakia
Ukraine
Austria
Budapest
Hungary
Romania
Croatia
Serbia
Contents 1. Types of Company, Share Classes and Shareholdings p.84 1.1 Types of Company p.84 1.2 Types of Company Used by Foreign Investors p.84 1.3 Types or Classes of Shares and General Shareholders’ Rights p.86 1.4 Variation of Shareholders’ Rights p.87 1.5 Minimum Share Capital Requirements p.87 1.6 Minimum Number of Shareholders p.88 1.7 Shareholders’ Agreements/Joint Venture Agreements p.88 1.8 Typical Provisions in Shareholders’ Agreements/Joint Venture Agreements p.88 2. Shareholders’ Meetings and Resolutions p.88 2.1 Types of Meeting, Notice and Calling a Meeting p.88 2.2 Notice of Shareholders’ Meetings p.89 2.3 Procedure and Criteria for Calling a General Meeting p.89 2.4 Information and Documents Relating to the Meeting p.90 2.5 Format of Meeting p.90 2.6 Quorum, Voting Requirements and Proposal of Resolutions p.91 2.7 Types of Resolutions and Thresholds p.91 2.8 Shareholder Approval p.91 2.9 Voting Requirements p.92 2.10 Shareholders’ Rights Relating to the Business of a Meeting p.92 2.11 Challenging a Resolution p.93 2.12 Institutional Shareholder Groups p.93 2.13 Holding Through a Nominee p.93 2.14 Written Resolutions p.93 3. Share Issues, Share Transfers and Disclosure of Shareholders’ Interests p.94 3.1 Share Issues p.94 3.2 Share Transfers p.94
4. Cancellation and Buybacks of Shares p.95 4.1 Cancellation p.95 4.2 Buybacks p.96 5. Dividends p.96 5.1 Payments of Dividends p.96 6. Shareholders’ Rights as Regards Directors and Auditors p.96 6.1 Rights to Appoint and Remove Directors p.96 6.2 Challenging a Decision Taken by Directors p.97 6.3 Rights to Appoint and Remove Auditors p.97 7. Corporate Governance Arrangements p.97 7.1 Duty to Report p.97 8. Controlling Company p.98 8.1 Duties of a Controlling Company p.98 9. Insolvency p.98 9.1 Rights of Shareholders If the Company Is Insolvent p.98 10. Shareholders’ Remedies p.99 10.1 Remedies Against the Company p.99 10.2 Remedies Against the Directors p.100 10.3 Derivative Actions p.100 11. Shareholder Activism p.100 11.1 Legal and Regulatory Provisions p.100 11.2 Aims of Shareholder Activism p.101 11.3 Shareholder Activist Strategies p.101 11.4 Recent Trends p.101 11.5 Most Active Shareholder Groups p.101 11.6 Proportion of Activist Demands Met p.101 11.7 Company Prevention and Response to Activist Shareholders p.102
3.3 Security Over Shares p.95 3.4 Disclosure of Interests p.95
82 CHAMBERS.COM
Powered by FlippingBook