NYRT.

A public limited company (nyilvánosan működő részvénytársaság) is a type of business entity whose securities (értékpapírok) are traded on a stock exchange (értéktőzsde). When a business chooses the form of a public limited company, this is usually done for the purpose of raising funds on a large scale by issuing (kibocsátani) shares (részvény) or other securities, such as bonds (kötvény), and such a company may invite the public to subscribe (jegyezni) for these securities.  A public limited company’s name has to end in ‘plc’ in order to clearly indicate what type of company it is. The law requires that the company give regular information to the public about its activity.

 The liability of the shareholders (UK) / stockholders (US) (részvényesek) is limited to the amount they invested in the company. There are different types of shares, e.g. ordinary shares (UK) / ordinary stocks (US) (törzsrészvény) with voting rights (szavazati jog) or preference shares (UK) / preferred stocks  (US) (elsőbbségi részvény), often without voting rights (szavazati jog).

 The formalities for the formation/establishment of a public limited company have a few major steps. First, the basic documents, such as the memorandum of association and the articles of association (UK) / articles of incorporation and the bylaws (US) (alapszabály), are drawn up and signed by the very first subscribers. These documents and certain additional papers are filed with the competent authorities and a registration fee (bejegyzési illeték) is paid. If the documents are in order, a certificate of registration (bejegyző végzés) is issued.