The government recently introduced facilitation measures in the field of company law to provide a more convenient way for companies in the decision-making process. For example, a decision-making body might hold its meeting by electronic communication means or adopt resolutions without holding meetings. In addition to this, the acceptance of the company’s report can be carried out by electronic communication means or other electronic means suitable for identification.
Hungarian companies rarely include a Force Majeure clause in their contracts; however, these companies should examine the clause to determine whether the current situation is covered. Concerning future contracts, it is respectfully advised for a company to include a Force Majeure clause. Companies are recommended to review their contracts and conduct a risk analysis concerning existing contracts. If there is a contractual obligation that the company is unable to fulfil due to the Corona Crisis, it is essential to send a written notification to the contracting party and secure evidence.
Companies should maintain internal documentation regarding the effects of the Corona Crisis and the measures taken to mitigate those effects. These documents could be helpful in a potential dispute or judicial proceeding that arises due to the crisis.
It is recommended that companies constantly monitor the state subsidies (to be) announced by the Hungarian government and find the most suitable one for their business to preserve competitiveness and avoid insolvency. As for employment, companies should consider the previously mentioned state subsidy and consider all options on employment. Companies and their employees should negotiate alternative solutions, such as a separate agreement where they determine different working circumstances.
