OECD Corporate Governance Factbook 2025: Hungary

Table of contents

• Recent developments (as of 1 October 2025)
• Global markets and public equity ownership
• Corporate governance and institutional framework
• The rights of shareholders and key ownership functions
• The board of directors
• Corporate sustainability

This Country Note consolidates information published in the 2025 edition of the OECD Corporate Governance Factbook. Along with the summary of recent developments, it provides an overview of Hungary’s corporate governance framework and related information benchmarked against 51 other jurisdictions covered by the Factbook, including all OECD and G20 members.

The information in this document is as of 31 December 2024 unless otherwise specified.

For further details, please refer to the OECD Corporate Governance Factbook 2025.

1. Recent developments (as of 1 October 2025)

• In December 2023, the Hungarian Parliament enacted the ESG Act that establishes a comprehensive sustainability and Environmental Social and Governance (ESG) framework. The ESG Act lays down rules on ESG due diligence obligations and it incorporates sustainability reporting obligations transposing the EU Corporate Sustainability Reporting Directive by amending the Accounting Act and Act on Auditors.

• The Abu Dhabi Securities Exchange (ADX) and the Budapest Stock Exchange (BSE) signed a Memorandum of Understanding (MOU) to collaborate on a number of key initiatives. The MOU sets out to deepen relations between the two countries' capital markets and share best practices. The agreement also marks another important step in the BSE's efforts to build international relations, including in the Middle East.

• The shares of the BSE have also been included in the BUMIX index basket from 1 October 2025. BUMIX is an indicator that complements the main index (BUX), which provides an opportunity for listed companies with a smaller capitalisation compared to blue-chips, thus supporting their visibility. Like the leading stock index, the BUX, it operates as a full yield index, which means that in addition to price changes, dividend payments are also included in the value of BUMIX. The indicator was introduced in 2004 with a base value of 1000 points, and reached its highest level of 9514.97 points on 11 September, 2025.

2. Global markets and public equity ownership

2.1. Size of the public equity market

	No. of listed companies in Dec 2024	Change since Dec 2021		Market capitalisation in Dec 2024	Ratio to GDP
Hungary	44		25.7%	USD 40 bn	18%
OECD members	21 618		4.3%	USD 92 518 bn	136.5%
World	46 086		11.3%	USD 124 536 bn	112.7%

Note: “World” covers 98 jurisdictions. “OECD members” covers 38 countries.

Source: OECD Capital Market Series Dataset. IMF.

2.2. Public equity ownership by investor category

Note: “World” covers 98 jurisdictions.

Source: OECD Capital Market Series Dataset.

2.3. Ownership concentration by market

Note: The share of companies in each jurisdiction where the single largest shareholder and the three largest shareholders own more than 50% of the company’s equity capital. “World” covers 98 jurisdictions.

Source: OECD Capital Market Series Dataset.

3. Corporate governance and institutional framework

3.1. Regulatory framework on corporate governance

Main public regulator	Central Bank of Hungary
The largest stock exchange	Budapest Stock Exchange, a joint stock company
Main laws and regulations	Civil Code Act on the Capital Market Corporate Governance Recommendations of BSE

3.2. Mechanisms for corporate governance code/principle

Code/principle	Corporate Governance Recommendations of BSE
Basis for framework	Law or regulation	Approach	Comply or explain
Disclosure in annual report	Required	Surveillance	Corporate Governance Committee & Stock Exchange
Custodians	Hungary Corporate Governance Committee (of the Budapest Stock Exchange Plc)	Latest code update	2023
Issuing body for national monitoring report	Corporate Governance Committee

• The categories that the jurisdiction fits into are highlighted in blue.

• The bold numbers and words indicate country-specific additional information.

• The numbers within parentheses indicate the number of jurisdictions applicable to each category.

• For further information on the methodologies used for the categorisations, please see the OECD Corporate Governance Factbook 2025.

4. The rights of shareholders and key ownership functions

4.1. Shareholders’ rights for the general meeting

Notice period	10-15 days (10)	20-21 days (20)		22-28 days (6)		>28 days (16) 30 days
Shareholding threshold for placing agenda items*	<3% (23) 1%	3-4 % (6)		5% (22)		>5% (6)
Shareholding threshold for requesting meeting*	<3% (5) 1%	3-4 % (4)		5% (28)		>5% (20)
Deadline for meeting after request	≤15 days (3)	16-30 days (14) 30 days		31- 90 days (26)		No specific deadline (9)
Shares without voting rights with preferential right to dividends	Allowed (34)	Issuing share with limit (14)		Not allowed (3)			No provision (1)
Shares without voting rights and preferential rights to dividends	Allowed (26)			Not allowed (14)			No provision (12)
Multiple classes of shares with a different no. of votes each	Allowed (28)	Allowed with limit (3)		Not allowed (14)			No provision (7)
Timing of disclosure of voting result after meeting	Up to 5 days (32) Immediately (max. 1 working day)		Within 6-15 days (19)		Others (1)
Provision regarding hybrid shareholder meetings	Allowed by law/regulation/rule (47)	Recommended by code (2)		No provision (3)
Provision regarding virtual shareholder meetings	Allowed by law/regulation/rule (42)	Recommended by code (2)		No provision/virtual shareholder meetings are not allowed (8)

* Some jurisdictions belong to multiple categories because of the additional requirements other than a percentage of shareholding.

4.2. Related party transactions (RPTs)

Immediate disclosure	Required (49)	Not required (3)
Periodic disclosure	Required (45)	Not required (7)
Board approval for certain RPT	Required (45)	Not required (7)
Shareholder approval for certain RPT	Required (36)	Not required (16)

4.3. Takeover bid rules

Takeover bid approach*	Ex-ante (9)			Ex-post (42)
Threshold for mandatory takeover bid*	<30% (12) 25% (if no other shareholders with more than 10%) or 33% of voting rights		30-33% (24)		33-50% (8)		>50% (2)		Control over the board and others (5)
Minimum bidding price (price paid by offeror) *,**	Highest in 3-4 months (3)	Highest in 6 months (14)		Highest in 12 months (19)		Other requirement (8)		No requirement (11)
Minimum bidding price (market price) *,**	Average in 1-3 months (6)	Average in 6 months (9)***		Average in 12 months (2)		Other requirement (11)		No requirement (29)

* Jurisdictions where mandatory takeover bid rules exist are included.

** Some jurisdictions belong to multiple categories.

*** Weighted average market price of last 180 days (or, if available, 360 days).

4.4. Stewardship and fiduciary responsibilities

National frameworks

Act on the Capital Market Act XVI of 2014 on Collective Investment Trusts and Their Managers, and on the Amendment of Financial Regulations Act LXVII of 2019 on long-term shareholder engagement

Institutional investors

Disclosure on voting policies

Law/regulation/rule (23)

Both (Law/regulation/rule and code) (11)

Code (4)

Code and industry association requirement (1)

Industry association requirement (1)

Comply or explain (6)

No provision (6)

Policy of conflicts of interest

Law/regulation/rule (28)

Both (Law/regulation/rule and code) (14)

Code (3)

Industry association requirement (2)

Comply or explain (4)

No provision (1)

Disclosure on conflicts of interest

Law/regulation/rule (19)

Both (Law/regulation/rule and code) (12)

Code (1)

Industry association requirement (1)

Comply or explain (6)

No provision (13)

Constructive engagement

Law/regulation/rule (15)

Both (Law/regulation/rule and code) (4)

Code (4)

Industry association requirement (2)

Comply or explain (5)

No provision (22)

Proxy advisors

Disclosure on voting policies

Law/regulation/rule (16)

Both (Law/regulation/rule and code) (2)

Code (3)

Comply or explain (3)

No provision (28)

Policy of conflicts of interest

Law/regulation/rule (20)

Both (Law/regulation/rule and code) (1)

Code (3)

Comply or explain (3)

No provision (25)

Disclosure on conflicts of interest

Law/regulation/rule (20)

Both (Law/regulation/rule and code) (1)

Code (3)

Comply or explain (3)

No provision (25)

4.5. Company groups

Disclosure on beneficial owners	Mandatory to public (38)	Mandatory to the regulator only (7)		Mandatory to the regulator and voluntary to public (4)		Voluntary to public (1)		Absence of mandatory/voluntary disclosure provisions (2)
Disclosure on shareholder agreements	Mandatory to public (39)			Mandatory to the regulator only (2)			Absence of mandatory/voluntary disclosure provisions (11)
Disclosure on cross shareholdings	Mandatory to public (24)		Mandatory to the regulator only (2)		Voluntary to public (1)				Absence of mandatory/voluntary disclosure provisions (25)

5. The board of directors

5.1. Basic board structures and independence

Board structure		One-tier system (24)		Optional for one-tier and two-tier system (18)		Two-tier system (7)	Multiple options with hybrid system (3)
Separation of CEO and board chair		Separation is required (14)	Separation is recommended (16)	Incentive mechanism (2)	Not required/ recommended (10)
Appointment of independent directors	Regulation*	1 person (4)	2-3 persons (12)	20-30% (4)	33% (9)	≥50% (6)	Not applicable (22)
	Code*	1 person (1)	2-3 persons (5)	20-30% (1)	33% (8)	≥50% (20)	Not applicable (22)

* Some jurisdictions belong to multiple categories.

5.2. Board-level committees

Setting audit committee (AC)		Law/regulation/rule (45)			Code (7)
Setting nomination committee (NC)		Law/regulation/rule (12)		Code (32)			No provision (8)
Setting remuneration committee (RC)		Law/regulation/rule (16)		Code (29)			No provision (7)
AC member independence	Regulation	1-3 persons (7)	Majority (22)			100% (9)		Not applicable (14)
	Code	1-3 persons (1)	Majority (10)			100% (2)		Not applicable (39)
NC member independence	Regulation	1-3 persons (3)	Majority (7)			100% (2)		Not applicable (40)
	Code	1-3 persons (2)	Majority (20)			100% (2)		Not applicable (28)
RC member independence	Regulation	1-3 persons (3)	Majority (10)			100% (2)		Not applicable (37)
	Code	1-3 persons (2)	Majority (13)			100% (10)		Not applicable (27)
Risk management role of AC		Law/regulation/rule (27)		Code (15)			No provision (10)

5.3. Auditor independence, accountability and oversight

Professional auditor bodies	Hungarian Chamber of Auditors (MKVK)
Public oversight body	Auditors’ Public Oversight Authority (KKH)
Approval of external auditor by shareholders	Law/regulation (47)		No provision (5)
Recommendation or nomination of auditor by AC	Law/regulation/rule (46)	Code (5)		No provision (1)
Reviewing the auditor’s scope by AC	Law/regulation/rule (41)	Code (8)		No provision (3)

5.4. Board nomination and election

Majority voting	Required (42)		Not required (10)
Qualification for board candidates	Law/regulation/rule (11)	Both law/regulation/rule and code (5)	Code (22)	No provision (14)
Info to shareholders on candidates’ qualifications	Law/regulation/rule (26)	Both law/regulation/rule and code (6)	Code (14)	No provision (6)

5.5. Board and key executive remuneration

Criteria on structure of board remuneration	Required (28)		Recommended (23)		No provision (1)
Long-term incentive for board	Law/regulation/rule (18)		Code (17)		No provision (17)
Shareholder approval on remuneration policy	Binding, vote required (28)	Binding, vote recommended (1)	Advisory, vote required (10)	Advisory, vote recommended (3)	Choice between approval or articles of association (4)	No provision (6)
Shareholder approval of level of remuneration	Binding, vote required (28)	Binding, vote recommended (1)	Advisory, vote required (14)	Advisory, vote recommended (2)	Choice between approval or articles of association (3)	No provision (4)

5.6. Gender composition on boards and in senior management

Women’s participation in 2024	Boards of directors	10.2%
	Managerial positions	40.5%
Gender diversity on boards	Quota	-
	Target	-
Disclosure on gender composition of boards		Law/regulation/rule (34)	Code (4)	No provision (14)

6. Corporate sustainability

6.1. Sustainability-related disclosure

Key resources	Act C of 2000 on Accounting Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of Auditors, and on the Public Oversight of Auditors Recommendation No 12/2023 (XI.27.) of the ( 235 OECD CORPORATE GOVERNANCE FACTBOOK 2025 © OECD 2025 Magyar Nemzeti Bank on climate-related and environmental risks and the consideration of environmental sustainability aspects in the activities of insurers Recommendation No 10/2022. (VIII.2.) of the Magyar Nemzeti Bank on climate-related and environmental risks and the integration of environmental sustainability considerations into the activities of credit institutions (CSRD transposed)
Sustainability disclosure	Law/regulation (41)		Listing rules (6)			Code (4)		Relevant provision without specific requirement or recommendation (1)
Disclosure standards	IFRS Sustainability Standards (9)	European Sustainability Reporting Standards (24)			Other international standards (4)		Other local standards (6)		No provision (9)
Primary users	Investors (9)			Multiple Stakeholders (33)				No provision (10)
Sustainability matters	All material sustainability matters (44)			Only climate-related matters (2)				No provision (6)

6.2. Sustainability governance

Board responsibilities for sustainability	Law/regulation (20)	Listing rules (5)	Code (12)	No provision (15)
Key resources	Section 23 of Act CVIII of 2023 (ESG Act)

6.3. ESG rating agencies and index providers

ESG rating and index providers*	Framework for ESG ratings (32)	Framework for index providers (31)	No provision (17)
Disclosure of methodologies	Law/regulation (29)	Code (4)	No provision (19)
Disclosure of management of conflicts of interest policy	Law/regulation (30)	Code (4)	No provision (18)

* Some jurisdictions belong to multiple categories.

6.4. Sustainability-related assurance

Framework	Law/regulation (31)		Code (1)			Public consultation/ active consideration (9)	No provision or consultation (11)
Assurance service providers*	Statutory auditors (21)	Service providers with accreditation by a public organisation (11)		Other service providers (3)	No provision (1)
Level of assurance*	Limited assurance currently or planned (33)	Reasonable assurance currently or planned (6)		No provision (2)
Key resources	Act C of 2000 on Accounting Act LXXV of 2007 on the Chamber of Hungarian Auditors, the Activities of Auditors, and on the Public Oversight of Auditors

* Some jurisdictions belong to multiple categories.