NEW AMENDMENT SPEEDS UP CIVIL ORGANISATION PROCEDURES

Based on the amendment of the acts on the civil organisation procedures entered into force on 1 March 2017, registration procedures of civil organisations will be speeded up. According to the amendment, if, in simplified procedures, the court does not meet its obligation to render its decision 30 days after the expiry of the deadline prescribed by the law, the requested data of the organization shall be registered by the operation of law automatically. After the organisation has submitted an amendment notification, as long as the court does not decide thereon, it has no possibility to notify additional change of data and to submit a new modification of its articles of association, unless the court orders to file additional documents. An important novelty is that a ruling requesting additional documents or information may be delivered only once, and it shall indicate all errors of the application for registration.

The rulings on registration and amendment notification relating to associations, funds and sport associations become immediately final and binding, therefore, they may not be appealed. The prosecutor may, however, file a lawsuit against the organization, if the data included in the ruling or in any supporting document does not comply with the law. Such appeal right is ensured for persons in respect of whom the ruling contains a provision, concerning the appropriate section.

Instead of the previous multi-step civil procedures, the cessation of the funds and associations can be stated (e.g. if the goal of the organization became impossible to accomplish) in the framework of one non-contentious procedure. In addition, now the late submission of applications will be sanctioned, since due to the amended rules, a fine shall be imposed on the organisation in an amount between HUF 10,000 and HUF 900,000.