The company limited by shares may operate either as a public or as a private company. Any company whose shares are listed on a stock exchange functions as a public limited company (shortly in Hungarian: nyrt.) and any company whose shares are not listed on any stock exchange functions as a private limited company (shortly in Hungarian: zrt.).
During the founding, members or the initial capital cannot be solicited via public invitation.
One share may have more than one owners and also, rights belonging to particular shares can diverge. Limited companies have to keep a register of shareholders and shareholders may exercise shareholder rights in dealings with the company only upon being registered in the register of shareholders.
The amount of cash contributions at the time of foundation may not be less than thirty per cent of the share capital. Shareholders have to pay the nominal value or accounting par value of the shares to the limited company in full within one year from the date when the limited company is registered, and have to put asset contributions at the company’s disposal in full within three years from the date of registration.
An additional body is the management board, which manages the company and, as a general rule, is comprised of at least three natural persons; the maximum number of managers is not specified in the Civil Code. In the case of private limited companies, no management board exists, and the chief executive officer exercises its powers.
Public limited companies also have to install supervisory boards and set up audit committees.
Finally, all companies limited by shares have to employ auditors.