Felügyeltanács

Felügyeltanács, often translated as "supervisory board" or "board of supervisors," is a type of corporate governance body typically found in Hungary. It is established by law to oversee the activities of certain types of companies, particularly those in the financial sector, to ensure transparency, accountability, and compliance with legal requirements.

The felügyeltanács is composed of independent members who are not involved in the day-to-day management of the company. Their primary functions include reviewing the company's annual report, assessing the financial statements, and monitoring the company's compliance with laws and regulations. They also have the authority to request additional information from the company's management and to propose changes to the company's governance structure.

The establishment of a felügyeltanács is mandatory for certain types of companies, such as banks, insurance companies, and investment firms. The members of the felügyeltanács are appointed by the National Bank of Hungary, based on recommendations from the Hungarian Financial Supervisory Authority. The term of office for felügyeltanács members is typically four years, with the possibility of reappointment.

The role of the felügyeltanács is crucial in maintaining public trust in the financial sector and in preventing misuse of power by company management. It acts as an independent check on the activities of the company, helping to ensure that the company operates in the best interests of its shareholders and the public.