Description: Hungary : Corporate Governance Country Assessment

Hungary : Corporate Governance Country Assessment

This report assesses the corporate governance policy framework and enforcement and compliance practices in Hungary. Hungary has already invested considerable resources in upgrading its legislation to meet European Union Directives, and the legislat...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCESS TO INFORMATION ACCOUNTABILITY ACQUISITION ACQUISITIONS AUDIT COMMITTEES AUDITOR INDEPENDENCE AUTHORITY AUTHORIZATION BANKS BENEFICIAL OWNER BENEFICIAL OWNERS BOARD MEMBER BOARD MEMBERS BOARD RESOLUTIONS BOOK VALUE CAPITAL EXPENDITURES CAPITAL MARKETS CASH FLOW STATEMENTS CHARTER CHARTERS CIVIL LAW SYSTEM CIVIL LIABILITY COMMON SHARES COMPANIES ACT COMPANY COMPANY LAW COMPANY LIMITED CONFLICTS OF INTEREST CONSENSUS CONTROLLING SHAREHOLDERS CORPORATE ASSETS CORPORATE CONTROL CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODE CORPORATE GOVERNANCE PRINCIPLE CORPORATE GOVERNANCE PRINCIPLES CORPORATE GOVERNANCE REFORM CORPORATE PERFORMANCE CORPORATE STRATEGY CORPORATION CORPORATIONS COURT DECISION-MAKING DECISION-MAKING BODY DISCLOSURE OBLIGATIONS DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DISCLOSURE RULES DIVIDEND PAYMENTS DIVIDENDS DUE CARE DUE DILIGENCE DUTY OF LOYALTY FINANCIAL CONTROL FINANCIAL DISCLOSURE FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL REPORTS FINANCIAL SERVICES FINANCIAL STATEMENTS FIRMS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FOREIGN SHAREHOLDERS GOLDEN SHARES GOVERNANCE GUIDELINES INDEPENDENT AUDIT INDEPENDENT DIRECTORS INSIDER DEALING INSIDER INFORMATION INSIDER TRADING INSOLVENCY INSTITUTIONAL FRAMEWORK INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INVESTMENT FUND INVESTMENT SERVICES INVESTOR PROTECTION LARGE COMPANIES LARGE SHAREHOLDERS LEGAL FRAMEWORK LEGAL PROVISION LEGAL PROVISIONS LEGISLATION LEGISLATIVE REFORM LIMITED LIMITED LIABILITY LIMITED LIABILITY COMPANY LISTED COMPANIES MANAGERS MERGERS MINISTRY OF FINANCE NATIONAL BANK OWNERSHIP DISCLOSURE REQUIREMENTS OWNERSHIP STRUCTURE PORTFOLIO PREEMPTIVE RIGHTS PRIVATE COMPANIES PRIVATE PLACEMENT PROFIT SHARING PROXY PUBLIC COMPANIES PUBLIC COMPANY REGULATORY FRAMEWORK REPRESENTATIVES RIGHTS OF OWNERS RIGHTS OF SHAREHOLDERS RISK MANAGEMENT SECURITIES LAW SHARE OPTIONS SHARE OWNERSHIP SHARE RIGHTS SHAREHOLDER SHAREHOLDER ACTIVISM SHAREHOLDER AGREEMENTS SHAREHOLDER MEETINGS SHAREHOLDER RIGHTS SHAREHOLDER VOTE SHAREHOLDERS SINGLE SHAREHOLDER STAKEHOLDER STAKEHOLDERS STATE-OWNED COMPANIES STOCK EXCHANGE STOCK OPTIONS SUBSCRIPTION TAKEOVER TAKEOVERS TAX AUTHORITY TENDER OFFERS TRADE UNIONS TRANSPARENCY UNION VETO VOTING
Online Access:	http://documents.worldbank.org/curated/en/2003/02/6733339/hungary-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/15709

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Summary:	This report assesses the corporate governance policy framework and enforcement and compliance practices in Hungary. Hungary has already invested considerable resources in upgrading its legislation to meet European Union Directives, and the legislative and regulatory framework dealing with corporate governance issues is robust. The major issues identified by this review include: (1) the general weakness of the supervisory board, which causes some non-compliance with several OECD Principles; and (2) a conflict between law and practice in the area of share registration, particularly the problems related to the ability of all shareholders to attend meetings and exercise their voting and other rights. Strengths and weaknesses are highlighted, and the policy recommendations made may be grouped under three categories: legislative reform, institutional strengthening, and voluntary/private initiatives. The report recommends creating a "share registration working group" to synchronize law and practice in the area of shareholder record keeping and voting. It also makes recommendations to be implemented as part of a Company Law update. Finally, the report promotes private sector initiatives and capacity building to build on legislative progress on corporate governance reform. It recommends developing a Hungarian corporate governance code of best practice, which would address key issues to include supervisory board roles and institutional investor responsibilities. The report also proposes that an Institute of Directors be created train supervisory board members, disseminate best practice, and promote dialogue between the public and private sectors. Together, these measures give issuers the choice to implement best practice and investors a benchmark against which to measure corporate governance in Hungary.

Hungary : Corporate Governance Country Assessment

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