HUNGARY | German-style Supervisory Board

Peremptory Supervisory Board | Hungarian company may appoint German-style Supervisory Board with strong decision-making powers.

The articles of association of companies may contain provisions on assigning the right of appointment and recall of management board members and of managing directors, as well as of establishing their remuneration to the supervisory board, and on rendering the passing of certain peremptory resolutions subject to the prior consent of the Supervisory Board (Peremptory Supervisory Board). In this case members of the Supervisory Board shall also be considered as executive officers as regards the functions of management’. The regulation on the Supervisory Board is that it allows the use of ICT, such as videoconferencing, with no need to be present in person.