Legal status of branch offices

Péter Gárdos, András Nagy and István Gárdos's article on branch offices examines what effect the amendment of the Branch Office Act had. The authors' conclusion is that although the Act expressly provides that branch offices have legal capacity, the interpretation of the rules of the Act leads to the result that branch offices do not have legal capacity. The result is in line with the European regulations. Regulation 575/2013/EU provides that branches are places of business which form legally dependent part of an institution and which carry out directly all or some of the transactions inherent in the business of institutions. The article (in Hungarian) is available on our website.

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