I. LEGAL FRAMEWORK

The Trading Company Law CXLIV/1997 contains 4 chapters, as it follows:

I. Common regulations on trading companies
II. Specific regulations on different types of trading companies (S. C.)
III. Complementary deeds
IV. Final provisions.

The main information with regard to the law:

The goal of the law is to provide the modern legal framework for the development and strengthening of the market economy in Hungary, for increasing the income from production activities of the national economy, development of enterprises, as well as the harmonization of legal regulations with the general norms of the European Community in the same field.

The present Act regulates the setting-up, organization and operation of the trading companies with the headquarters in Hungary, the rights, duties and liability of the founding members and companies along with the modification, merging and dissolution but also the liquidation without heirs.

This Act contains regulations with regard to the associations that have a legal status - chapter XIII -, also, chapter XIV, norms with regard to the dividends in the trading companies.

The Hungarian law on trading companies does not contain specific legal regulations for the foreign investors. "There can set-up trading companies for developing common economic activities natural persons, trading companies without a legal status, from home and abroad, they may become partners in such companies, get shares and dividends".