tag: liability

As technology advances, it becomes easier and easier to record any conversation. Today, anyone with a smartphone can easily record business meetings - even in secret. There are many reasons for making a secret recording: for some it may be a security measure to avoid disputes, for others it may be an ulterior motive to use it later. But is it legally permissible to make an audio recording in secret? And what are the consequences of using a secretly made audio recording in a civil or criminal case?

Panicking amid the health crisis, company managers can easily feel pressured to take some “seemingly obvious” legal or business measures to resolve their situation. However, these measures often involve serious legal risks and should be approached with caution.

The impending economic crisis is expected to upset the financial position of many businesses. At these companies, the responsibilities of the company manager will also change: in a near-bankruptcy situation, the manager is obliged to take into account not only the interests of the company but those of the creditors as well. But what is simple on paper is not so straightforward in practice.

The issue of governing law often arises in cross-border M&A deals or contractual relationships. At such times – either due to the UK domicile of a contracting party, or to the widespread use of the Anglo-Saxon templates – it is often the English law that is chosen. It may turn out to be important to understand the difference it can mean to the parties’ positions if instead of Hungarian law they were to opt for English law – for example, when drawing up the documents for a company acquisition. 

A rule in the bankruptcy act that had been in effect for over 10 years presented an impossible dilemma for the senior officers of companies under threat of insolvency. An amendment of the law that recently took effect, however, resolves the stalemate and opens the possibility for managers to make sound business decisions in crisis situations.