Signatory authority in Hungary
In Hungarian corporate law, the rules governing how individuals are authorized to sign on behalf of a company are specified in the company’s official registry extract (cégkivonat). These signatory rights are legally binding and determine how contracts, official forms, and other legal documents must be signed to be valid.
There are two primary types of signatory rights:
A, Joint Signatory Rights (Hungarian: együttes aláírási jog)
B, Individual (or Sole) Signatory Rights (Hungarian: önálló aláírási jog)
A, Joint Signatory Rights (Együttes aláírási jog)
If a company operates with joint representation, the term "együttes aláírás" will be indicated in the company extract.
Definition:
This means that two designated individuals must sign together in order for a document to be validly executed on behalf of the company.
Who may hold joint signatory rights?
- Managing Directors (Ügyvezető): A managing director may have joint signatory rights, requiring them to co-sign with another authorized individual.
- Other Employees (Más munkavállaló): Non-executive employees may also be granted joint representation rights.
Legal effect: Any document signed by any two of the listed authorized persons (as registered in the cégkivonat – company extract) is legally binding for the company—provided that their joint authority is properly respected.
Required Documentation:
A copy of each signatory’s signature specimen (see below) must be presented along with the signed document for verification.
B, Individual (Sole) Signatory Rights (Önálló aláírási jog)
Definition:
When an individual is granted önálló aláírási jog, they have the independent authority to represent and bind the company alone, without the need for any co-signature.
Typical Holder:
- a Managing Director (Ügyvezető) or CEO is often granted this right.
It will be explicitly stated in the company extract that the person has sole signatory right.
Legal Meaning and Importance:
The individual can sign contracts, legal declarations, or official company documents alone, and such documents are fully enforceable without another person’s involvement.
Important: A document signed solely by a person with individual signatory rights is legally valid and binding, as long as their authority is correctly registered.
Signature Specimen (Aláírási Címpéldány / Aláírás-minta)
Every authorized signatory must have a registered signature specimen, which is an official document verifying their signature for legal and procedural purposes.
Types of Signature Specimens:
"Aláírási címpéldány":
A notarized specimen issued by a Hungarian public notary. (or legalized by a Consulate)
"Aláírás-minta":
A simplified version issued by the company’s legal representative (usually the lawyer handling registration or company formation).
Usage:
Signature specimens are required for official procedures, such as company registration, court filings, or immigration-related processes involving company representation.
A copy is usually sufficient, though the original may be required in some formal cases.
Company Seal / Stamp (Cégbélyegző)
In Hungary, using a company seal is not legally required—except for public companies (Nyrt.).
Practical Notes:
Although optional, many institutions (especially government offices or banks) still expect or prefer documents to be stamped.
It adds an element of credibility, tradition, and formality, particularly in official or contractual settings.
Tip: While not mandatory, having a stamp on documents may speed up processing or reduce questions in official proceedings.