MANAGEMENT ACCOUNTABILITY - AMENABILITY

Objective

The goal of this training is to equip companies operating in Hungary with a comprehensive understanding of managerial accountability and amenability in a Hungarian legal context. This course will help company managers and legal departments understand their responsibilities, legal exposure, and the steps required to minimize risk and ensure compliance.

overview

1. Introduction to Manager Accountability in Hungary

1.1 Overview of Manager Accountability

Content: Introduction to the concept of managerial accountability, including legal responsibilities of company managers and directors under Hungarian law.


Purpose: Setting the stage for the legal environment managers are operating in.

1.2 Key Legal Frameworks Governing Manager Accountability in Hungary

Content: Detailed exploration of the Hungarian Civil Code, the Company Act, and relevant laws such as bankruptcy and insolvency laws.


Purpose: To familiarize participants with the legal documents that regulate their accountability.

1.3 Legal Responsibilities and Obligations of Managers

Content: Breakdown of the main legal duties of managers, such as fiduciary duties, duty of care, and conflict-of-interest policies.


Purpose: To ensure that managers understand their obligations to the company and stakeholders.

2. Understanding Legal Consequences and Risk Mitigation

2.1 Legal Consequences of Breaching Accountability

Content: Analysis of the consequences for managers who fail to fulfill their legal obligations, including fines, personal liability, and potential criminal charges.


Purpose: To highlight the severity of non-compliance and motivate adherence to best practices.

2.2 Personal Liability vs. Corporate Liability

Content: Distinction between when a manager is personally liable versus when the company holds liability for actions or decisions.


Purpose: To clarify legal lines and protect managers from unnecessary exposure.

2.3 Risk Mitigation Strategies for Managers

Content: Best practices for mitigating legal risks, including compliance programs, internal audits, and the role of legal advisors.


Purpose: To equip managers with tools to protect themselves and their companies from legal risks.

2.4 Workshop: Drafting Compliance Policies

Content: In small groups, participants will draft a simple compliance policy for a hypothetical company, addressing key areas like financial controls, reporting mechanisms, and conflict-of-interest policies.


Purpose: To give participants practical skills in developing policies that ensure legal accountability.

3. Regulatory Oversight and Corporate Governance in Hungary

3.1 Corporate Governance Standards in Hungary

Content: Introduction to corporate governance codes in Hungary and EU-wide governance frameworks. Topics include board composition, roles of the supervisory board, and executive accountability.


Purpose: To provide a foundation for understanding how good governance supports accountability.

3.2 Regulatory Bodies and their Role in Oversight

Content: Overview of Hungary’s key regulatory bodies such as the National Tax and Customs Administration (NAV) and the Hungarian Financial Supervisory Authority (PSZÁF), explaining their role in enforcing laws.


Purpose: To familiarize managers with regulators they may interact with.

3.3 Workshop: Corporate Governance Audit

Content: Participants will conduct a governance audit of a sample company, identifying gaps in compliance and governance.

Purpose: To apply theoretical knowledge to practical situations and improve auditing skills.

4. Manager Amenability to Legal Action

4.1 Amenability to Legal Action: Civil vs. Criminal Liability

Content: In-depth look at when and how managers can be held accountable for civil and criminal actions, including tax fraud, environmental violations, and mismanagement.

Purpose: To help managers understand the boundaries of their legal exposure.

4.2 Role of Legal Counsel and Internal Legal Departments

Content: How and when managers should involve internal or external legal counsel to protect themselves.

Purpose: To underscore the importance of early and proactive legal consultation.

4.3 Real-World Case Analysis: Legal Actions Against Managers

Content: Analysis of a high-profile Hungarian legal case involving managerial accountability, discussing where mistakes were made and how they could have been avoided.

Purpose: To learn from real-world scenarios and understand legal precedents.

5. Practical Scenarios and Legal Simulations

5.1 Legal Simulation: Managing a Compliance Crisis

Content: A legal simulation where participants must navigate a compliance crisis involving a breach of duty by a manager, responding to legal risks and making strategic decisions to minimize fallout.

Purpose: To practice applying learned concepts to real-world scenarios and prepare managers for handling crises.

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