Corporate Disputes

2017 / 06 / 01

The article by dr. Edina Parragi published in K&K Magazine discusses resolution options for disputes between company shareholders.

After a company is founded, the daily work and cooperation of shareholders often results in differences in opinions. These uneasy situations may create bumps in, or eliminate the possibility of, cooperation between shareholders. Such disputes may put the profitable operation or even the existense of the companyin jeopardy. In Hungarian law, the primary source of provisions (aside from the constitutional documents of the company) is the Hungarian Civil Code, which contains provisions ensuring that shareholders having committed more equity to the company, and therefore who undertake more economic risk, have more influence on company affairs but at the same time the law provides rights to minority shareholders not to be subjected unilaterally to the will of the majority.