In Hungary, the duties and responsibilities of directors are codified by the following pieces of legislation:
– Act V of 2013 on the Civil Code (“Civil Code”)
– Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceeding
– Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation Proceedings
– Act C of 2012 on the Criminal Code – Act CXXXVI of 2007 on the Prevention and Combating of Money Laundering and Terrorist Financing
– Act CXXXVIII of 2007 on Investment Firms and Commodity Dealers, and on the Regulations Governing their Activities
– Act LX of 2003 on Insurance Institutions and the Insurance Business – Act CXXXIX of 2013 on the Central Bank of Hungary
The director of the company plays a very important role in overseeing activities within the company, in promoting and upholding the company’s values of providing quality products and ensuring the highest levels of customer satisfaction.
As a director, you are therefore expected to give this role the due time, attention and focus that such a responsibility requires, and to exercise your judgement with due care and consideration.
A company director does not necessarily need to manage business activities within the company, ie ‘run the business’, nor do those who manage the business necessarily need to fulfil the role of director. However in order that you as a director can properly fulfil your duties in overseeing the company’s activities, it is vitally important that you have good visibility and regular access to the right management information.