Syndicate Agreements in Hungarian Company Law

Extract

As a result of the specific directions taken by development in Hungary (the economic reform after the year 1968 – gulaschcommunism, soft-dictatorship, pseudo rule of law) various elements of company law appeared in Hungary already in the 1960s. A particular company law came into existence within the state enterprises and the cooperatives (civil law partnerships, joint enterprises, associations – their unified regulation is to be found in law decree 4 of 1978), and the Hungarian Civil Code of 1959 maintained in force several of the commercial company forms regulated by the Commercial Code from before the Second World War. Therefore as of 1972, when the partnership of Western enterprises in Hungarian companies became possible, the Kft.-s (limited liability company) and the Rt.-s (company limited by shares) also appeared but sparsely in the Hungarian economy.