The shareholder has the discretion to decide on the appointment/removal of (any) director. According to Hungarian law, directors can be appointed by the sole shareholder either for a fixed duration of time up to five (5) years or for an indefinite period.
A limited company requires at least 1 director, unless the articles of association of the company specify a higher number of directors. There is no maximum number of directors that a limited company may appoint.
The following restrictions apply to the appointment of directors:
There is no board of directors in private limited liability companies (“kft.”) in Hungary, managing directors (hereinafter: directors) carry out the duties of the board instead. Directors are entitled to represent the company and handle management tasks individually.
Please note the company is represented by the director and their signatory rights shall be registered by the Court of Registry. Any restriction or division of the power of representation vested upon the director or rendering such director’s actions conditional or subject to approval is not effective as against third parties.
Directors may not acquire any interests, ie share capital, of a legal entity, excluding shares in public limited companies, which is engaged in the same economic activity as GBT.
Further, where a director accepts a new executive office, they have fifteen (15) days from the acceptance of the position to notify any other company in which they already serve as an executive officer or a supervisory board member; particularly where the business activities are regarded as similar.