10
Wed, Aug
65 New Articles

A “Special” Employee Stock Ownership Plan has been Introduced

A “Special” Employee Stock Ownership Plan has been Introduced

Hungary
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The provisions creating the legal framework of the Special Employee Stock Ownership Plan (“Special ESOP”) entered into force on 13 July 2021, providing a new special ownership opportunity for employees or board members of limited companies to acquire stocks at a more favourable rate than before.

The Special ESOP is based on certain general provisions of an employee stock ownership plan, however, it offers a special, more favourable opportunity to employees, members of the supervisory board or the board of directors / managing directors of a joint stock company or limited liability company to acquire the company’s shares or stocks.

Special ESOP may be established upon request of its employees with the launch of the plan, at the inaugural general assembly with at least ten participants, by the adoption of the statutes and the election of a body responsible for the operational management of the Special ESOP and the managing directors. Employees, simultaneously to the establishment of a Special ESOP, may create an asset managing foundation as well.

The number of the participants of the Special ESOP cannot be increased after its establishment, and as a principle, a membership cannot be terminated (with the exception of the transfer). In case of a Special ESOP, the membership may be inherited. The plan may be operated for an at least ten year-long limited period, after which the assets acquired by the implementing entity or their equivalent value must be transferred to the participants and the implementing entity must be dissolved.

By Eszter Kamocsay-Berta, Managing Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com