Civil Code to allow private foundations

Tourism

The draft for the new Civil Code creates a new category of NGOs by legalizing private foundations, a type of organization hitherto nonexistent in the country’s legal framework.

The requirement of “public benefit” will be eliminated from the criteria foundations have to fulfill in their operations, clearing the way for family trusts and other private non-profit organizations, Péter Gárdos, a consultant to the Justice and Law Enforcement Ministry, told business daily Világgazdaság. While legal professionals expect the number of foundations to increase from the current 20,000, the majority will continue to serve the purpose of public benefit. The drafting of the new Civil Code started three years ago, the final version may be passed in 2008 and come into effect in 2010 the soonest. (Világgazdaság)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Travel