A critical analysis of dependent companies with partnerships and the legal position of their directors
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Abstract
In the author's opinion the Hungarian legal system does not at present adequately deal with the special nature in Trust Law of those companies and their directors associated with and dependent on partnerships. These companies, legally independent, but economically connected to partnerships are required to push their own interests into the background in order to achieve common business goals. In the case of real groups of companies regulated by the Companies Act of 1997 only influence gained directly in relation to the given share owned in the partnership is considered relevant. Other formulation of this determining influence are not accompanied by requirement for excess liabilities and the law does not provide for arrangements to protect the interest of small owners and creditors. Accordingly it is the dominant influence that counts and not whether the directing influence is based on the size of the voting rights of the prevailing members or the contract established with the members ie. the shareholders.