Proceedings for civil associations in change: simpler and stricter

A significant amendment of the Act on the registration and procedural rules of civil associations came into force March 1, 2017.
 
The amendment aims to simplify and accelerate court proceedings in connection with civil associations:
 
- Simplified procedure becomes available for sport associations, too.

- Registration of the civil association takes place automatically by virtue of law when the court exceeds the legal deadline in simplified proceedings.

- The right of appeal against certain court decisions cease: granting registration, registration of changes and public benefit purpose (thus public attorney cannot appeal either unlike prior legislation).

- Rules on rectification get simpler as the court may order it only once identifying all the deficiencies in its order. 
 
However, with the amendments there are some stricter rules coming into force: if a civil association fails to submit the application for registering changes within the statutory 60 days, the court may impose a fine between HUF 10,000 and HUF 900,000 on the association or on the founder in case of foundations.
 
It is also important to note that following January 1, 2017, jointly with the first changes of the articles of association, civil associations are required to revise and, if necessary, to amend those provisions of the articles of association that are not in compliance with the Hungarian Civil Code.

For personalized information, please contact our experts at Ecovis Hungary Legal who are happy to be at your disposal.