Press release: Free movement of capital: Commission scrutinised amendments in Hungarian company law

The European Commission has decided to send Hungary a letter of formal notice concerning its Act CXVI of 2007 'amending certain acts relating to companies of particular importance for the security of public supply', which is considered incompatible with EC law. The Commission is concerned that the law may contain unjustified restrictions on the free movement of capital and right of establishment, by (i) introducing onerous requirements for public takeover bids and (ii) allowing public authorities to appoint a member on the boards of energy companies with the right to participate in the management and the control of the companies concerned.

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