Managing Directors can be employed again in Hungary

From 1 September 2007 it will be allowed again for executive officers (especially Managing Directors) in Hungary to establish an employment relationship with the company.

Consequently, the provisions of the employment can be
applied to the relationship between the company and the Managing Directors. The
provisions which came into force on 1 July 2006 prohibited the application of
employment, however as these rules had not worked perfectly, therefore it became
an option again for companies to establish employment relationships with the
executive officers. According to the new provisions the existing civil law based
relationships can be maintained, however if the executive officer performs
his/her duties on a daily basis it is advisable to restore his/her employment
relationship.