Hungarian Civil Code Update
Executive officers in Hungary can be held personally liable for damages suffered by a third party. Under the new Hungarian Civil Code, third parties can claim damages against not only the company, but against the individual executive officers.
With few exceptions, these individuals were previously exempt from personal liability in the event of a third-party claim arising from the day-to-day decision making on behalf of the company. Going forward, exemption relies solely on whether third-party damages could not be foreseen by the executive officer for reasons beyond his or her control.
Directors and officers liability insurance, whether purchased locally as an extension of a U.S. master program or a standalone policy, can provide the executive officer protection against his or her personal assets in the event of a claim.
India has been in the news quite a lot lately for the election of a new Prime Minister and ruling political party as well as the passing of the Companies Act. Several parts of the Companies Act relevant to Indian corporations, and specifically directors and officers, became effective in April.
In this article, a summary is provided of the relevant laws creating liability and remedies for directors in India, as well as what may cause additional claims.