Change of directorship and ownership in Hungarian Kft

[SayMyName]

Dear colleagues,

The client has Hungarian company (Kft) with nominee shareholder and director.
The main issue is that the nominee started to create obstacles in activity of the company and blackmails the client by asking certain amount for leaving the position of director and shareholder. However, the client is not willing to follow his demands, therefore I am trying to find an option how to get this person out of the company.
So basically I need a lawyer who would accept documents in relation to the change of management and directorship of the company without the presence of this nominee. New nominee will be able to visit the lawyer. I am aware about the all the possible risks, so I am searching for the person who can take those risks and help us with the solution.

If you have anyone in mind, please let me know.

Thanks

 

[Martin Everson]

The main issue is that the nominee started to create obstacles in activity of the company and blackmails the client by asking certain amount for leaving the position of director and shareholder. However, the client is not willing to follow his demands, therefore I am trying to find an option how to get this person out of the company.

What is in the nominee agreement? The terms of that agreement you signed will dictate events. If you have a written agreement and the nominee is acting within those terms your out of luck. If nominee is acting outside those terms then you have a case.

So basically I need a lawyer who would accept documents in relation to the change of management and directorship of the company without the presence of this nominee. New nominee will be able to visit the lawyer. I am aware about the all the possible risks, so I am searching for the person who can take those risks and help us with the solution.

Sorry can't help here. And makes no sense unless there is a breach of contract which you need to explain has or has not occurred.

 

[SayMyName]

What is in the nominee agreement? The terms of that agreement you signed will dictate events. If you have a written agreement and the nominee is acting within those terms your out of luck. If nominee is acting outside those terms then you have a case.



Sorry can't help here. And makes no sense unless there is a breach of contract which you need to explain has or has not occurred.

Hey.

Thanks for your comment.

There is an agreement signed between the nominee and let's say the management company (operating number of nominees), according to which now the nominee is acting outside the given scope of his rights. However, despite the name of the agreement, whether it is a nominee agreeement or business administration agreement or whatever, it can not bind the nominee as the nominee services in Hungary are illelgal and such contract is likely not to have any legal force within any court proceedings therein. It is just a tool that makes unaware people abide by its provisions and not to conduct any stupid moves.

Even if somehow this agreement can be used in the court, it's still not the case to file a claim against the nominee because of the time consuming procedures and relatable legal costs and risks.

This is why I am trying to find someone who would help with passing the changes within the company without involving any other methods such as pressure or violence to the nominee )

 

[Forester]

Hey.

Thanks for your comment.

There is an agreement signed between the nominee and let's say the management company (operating number of nominees), according to which now the nominee is acting outside the given scope of his rights. However, despite the name of the agreement, whether it is a nominee agreeement or business administration agreement or whatever, it can not bind the nominee as the nominee services in Hungary are illelgal and such contract is likely not to have any legal force within any court proceedings therein. It is just a tool that makes unaware people abide by its provisions and not to conduct any stupid moves.

Even if somehow this agreement can be used in the court, it's still not the case to file a claim against the nominee because of the time consuming procedures and relatable legal costs and risks.

This is why I am trying to find someone who would help with passing the changes within the company without involving any other methods such as pressure or violence to the nominee )

As all the case, after your explanation, seems to be in a grey zone (if not completely out of legality), I am afraid that the only advice can be: negotiate with a nominee (and have a lesson for the future). (A negotiation means a negotiation, not a simple accepting anyone's demands.) Of course, if you find someone who will be able to change the management and the directorship of the company without the presence of the current nominee – in a sustainable way, the problem is solved; but as I am afraid that such operation would probably be completely illegal, I am not giving you much chance.