A bill recently presented by the Hungarian Minister of Justice targets to speed up the registration procedures and the amendment notification procedures of civil organisations. The proposed changes have been definitely created on the basis of the “good practice” of the company registration procedure.
The prosecutor will not directly participate in the procedures relating to associations, funds and sport associations, as its right to appeal will cease based on the bill. The rulings on registration and amendment notification relating to civil organizations and sport associations will become immediately final and binding, therefore, they may not be appealed. The prosecutor may, however, file a lawsuit against the organization, if the data included in the ruling or in any supporting document does not comply with the law. Such appeal right will be ensured for persons in respect of whom the ruling contains a provision, concerning the appropriate section.
In simplified procedures, if the court does not deliver its decision within the deadline prescribed by the law, the requested data of the organization shall be registered automatically by the rules of law. In order to speed up the procedures, a ruling requesting missing information may be delivered only once, and it shall indicate all errors of the application for registration. However, the number of such rulings may be less in the future, as the types of the available document templates (e.g. declaration of acceptance) will be broadened. In case of late submission of the applications, as a sanction, the bill plans to impose a fine on the organisation in an amount between HUF 10,000 and HUF 900,000.
By Levente Csengery, Partner, KCG Partners Law Firm