ARTICLES OF ASSOCIATION OF THE HEA

in a consolidated structure, as amended by Act V of 2013 on the Hungarian Civil Code and Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations (hereinafter: Act CLXXV).

I. General provisions

1. § (1) Name of association: Magyar Közgazdasági Társaság
Name in English: Hungarian Economic Association
Name in French: Association Économique Hongroise
Name in German: Ungarische Volkswirtschaftliche Gesellschaft
Name in Spanish: Sociedad Húngara de Economía.
(2) Short name of association: MKT

2. § Registered office: 1055 Budapest, Bajcsy-Zsilinszky út 78.

3. § Area of operation: Hungary.

4. § Stamp: round stamp with name of association.

5. § The Hungarian Economic Association (hereinafter: the HEA) is an independent association with legal personality including sections and regional organisations (at county, city and regional level) of national competence.

II. Legal status, purpose and activity

6. § The HEA is and independent association established for an indefinite period, operating in accordance with the provisions set out for non-profit organisations by Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations.

7. § Within the scope of non-profit activities, the HEA is engaged in the following:
• scientific activity, research;
• education, competency development, dissemination of information;
• cultural activity;
• environmental protection;
• maintaining cross-border relationship with Hungarian nationals;
• promoting training and employment of disadvantaged groups in terms of labour market conditions and related services;
• promotion of Euro-Atlantic integration;
• provision of services for other non-profit organisations, exclusively available to such entities.

8. § (1) The HEA’s non-profit activity is performed in the interest of providing the following non-profit public services:
a) Based on the provision of the Law, in its capacity as member, the HEA is involved in the broadest multilateral consultation platform of social dialogue (Art. 4 (1) 4b) of Act XCIII of 2011 on National Economic and Social Council)
b) involvement in partnerships based on mutual support with Hungarian nationality groups living in diaspora and in the Transylvania, Upper Hungary, Vojvodina, Subcarpathia, Croatia, Prekmurje, Burgerland and western regions (Art 1 (3) c) of Gov. Decree No. 212/2010. (VII.1.))
c) involvement in duties related to education and culture of Hungarians living abroad (Art. 1 (4) a) of Gov. Decree No. 212/2010. (VII.1.))
d) involvement in organising development programmes aimed at strengthening the cultural and language identity of Hungarian communities living abroad (Art. 1 (4) b) of Gov. Decree No. 212/2010. (VII.1.))
e) involvement in duties imposed on Hungary as a result of European integration (Art. 11.g) of Gov. Decree No. 212/2010. (VII.1.))
f) involvement in the preparation and monitoring of national development plans related to the utilisation of EU Structural Funds and the Cohesion Fund (Art. 11.h) of Gov. Decree No. 212/2010. (VII.1.))
g) involvement in cultural activities and the organisation of professional relations imposed on Hungary as a result of European integration (Art. 52 r) of Gov. Decree No. 212/2010.
h) involvement in reviewing the Government’s educational concept (Art. 57.a) of Gov. Decree No. 212/2010. (VII.1.))
i) involvement in formulating public responsibilities related to the functioning and development of adult education in order to facilitate lifelong learning (Art. 61.b) of Gov. Decree No. 212/2010. (VII.1.))
j) involvement in developing the Government’s technology and innovation policies (Art. 62.h) of Gov. Decree No. 212/2010. (VII.1.))
k) involvement in developing employment enhancement policies in order to facilitate social inclusion (Art. 71/A (1) e) of Gov. Decree No. 212/2010. (VII.1.))
l) involvement in partnerships with Hungarian organisations and NGOs operating abroad in order to promote the Carpathian Basin Economic Region (Art. 74.1) of Gov. Decree No. 212/2010. (VII.1.))
m) involvement in developing forecasts on macroeconomic progress (Art. 75 (1) b) of Gov. Decree No. 212/2010. (VII.1.))
n) continuous monitoring and analysis of economic processes and the economic impacts of proposed measures for implementing economic policy programmes (Art. 75 (1) d) of Gov. Decree No. 212/2010. (VII.1.))
o) involvement in developing proposals and programmes for the economic integration of underdeveloped regions (Art. 75 (1) e) of Gov. Decree No. 212/2010. (VII.1.))
p) involvement in developing legislation related to social market economy based competitiveness improvement, micro, small and medium sized companies and support for their development, economic chambers, investment enhancement and national accreditation issues (Art. 75 (1) h) of Gov. Decree No. 212/2010. (VII.1.))
q) involvement in developing public funds related regulation (Art. 75 (1) i) of Gov. Decree No. 212/2010. (VII.1.))
r) involvement in developing the Government’s pension and health insurance policies (Art. 75 (1) u) of Gov. Decree No. 212/2010. (VII.1.))
s) involvement in developing legislation on money, capital and insurance markets and the relevant market players, the state supervision of such markets, and the prevention of money laundering and terrorist financing (Art. 75 (6) a) of Gov. Decree No. 212/2010. (VII.1.))
t) involvement in developing the Government’s concepts on employment, standard of living and regional cohesion policies (Art. 81 (1) b) of Gov. Decree No. 212/2010. (VII.1.))
u) involvement in monitoring the employment situation and developing forecasts for labour market demand and supply (Art. 81 (1) j) of Gov. Decree No. 212/2010. (VII.1.))
v) involvement in executing public responsibilities related to the functioning and development of public education and tertiary education systems in order to facilitate lifelong learning (Art. 81 (2) l) of Gov. Decree No. 212/2010. (VII.1.))
x) involvement in developing adult learning and labour market training programmes and disseminating such programmes based on advanced information technology (Art. 81 (2) m) of Gov. Decree No. 212/2010. (VII.1.))
y) involvement in developing and reviewing legislation on regional development (Art. 82.b) of Gov. Decree No. 212/2010. (VII.1.))
z) involvement in developing legislation on research-development and technological innovation, and the relevant Government decisions, strategies and programmes (Art. 83. a) and b) of Gov. Decree No. 212/2010. (VII.1.))
(2) The HEA performs the activities listed in Art. 8 primarily at the request of, and in partnership with the public authorities and organisation responsible for the specific areas. In order to formulate opinion, the HEA relies on the involvement of its competent sections and organisations.
(3) The most important information related to its activities and functioning according to the Articles of Association are published on the HEA’s website (www.mkt.hu).

9. § (1) The platforms of the Hungarian Economic Association wish to provide scope for every economic direction and school, considering it important to facilitate the freedom of professional opinion.
(2) The aim of the HEA via its membership and available tools is to promote the development and practical use of economic science, to enhance relations with representatives of related branches of science and to improve economic thinking, in addition to contributing to the nation’s enrichment, and to the representation and protection of the interests of its members and of the economic profession in general.

10. § In order to achieve the set goals, the Hungarian Economic Association, as well as its sections and organisations
a) support the development of new scientific results (works);
b) seek to facilitate answering questions raised by national economy and corporate practice for those practicing and using economics;
c) provide forums for disseminating the relevant knowledge and experience;
d) organise discussions on various scientific and professional issues;
e) facilitate the professional training and self-development of practicing economists;
f) maintain relationships with members having legal personality;
g) maintain relationships with foreign partner associations and facilitate contact with professionals abroad;
h) undertake membership and participate in the activities of international professional organisations;
i) participate in the development and reviewing of public measures concerning the professional interests of economists;
j) devote special attention to promoting the involvement of economics students at secondary and tertiary level in professional public life and facilitating the integration of young professionals.

11. § (1) In addition to facilitating the activities listed in Articles 8 and 10, the HEA, along with its sections and organisations, is engaged in the following:
a) organising scientific and professional discussions, forums, lectures, conferences and congresses;
b) publishing journals, books and other publications, including electronic means;
c) maintaining relations with other Hungarian professional and scientific organisations and foundations, also in the capacity as member;
d) cooperating with foreign organisations of economics/economists;
e) organising training courses;
f) participating in the development of proposals and plans related to economics/economists;
g) launching scientific tenders;
h) organising and operating clubs and public libraries for economists.
(2) The HEA establishes and grants various awards and honours.

12. § The HEA provides the activities listed in Articles 7-11 not only to members, but also to professionals interested in participating in various programmes. As a major tool, the programmes of the HEA are announced publicly. Information on the operation and services, as well as statements and public benefit reports of the Association are published at the HEA’s website (http://www.mkt.hu).

13. § The HEA performs economic or business activity on secondary basis, exclusively in the interest of, and without any danger to achieving the set public benefit goals.

14. § Any profits resulting from the economic operations of the HEA should be allocated to targeted activities set out in Articles 7-11 herein, without distributing dividends.

15. § The HEA should not engage in political activity, and should remain independent of any political party. The HEA should not provide financial support to any such parties, and should not accept financial support from them either. It shall not nominate or support candidates to the European or the national Parliament, or to any county or metropolitan municipality.

16. § All records of the HEA’s general assemblies, board meetings and supervisory meetings should be public and accessible to anyone based on prior arrangement. Such records should account for the content, date and scope of the HEA’S management decisions, the ratio of supporters and opponents of each decision, and preferably their identities. Access to documents regarding the functioning of the Association should be provided via the Secretariat of the HEA to anyone during regular working hours.

III. Members of the Association

17. § The membership of the HEA consists of founding members, regular members, honorary members and legal members.
(1) A founding member is a natural person involved in the re-inaugural meeting of the HEA on 15 December 1959, respectively in the inaugural general assembly of any (regional) organisation.
(2) A regular member is an individual of Hungarian or foreign nationality engaged in economics activity, holding a degree in economics or performing economics studies, who is willing to accept the Articles of Association of the HEA, and is prepared to undertake participation in the Association’s activity and to pay regular membership fee. Membership status occurs upon submission of a joining declaration and payment of the relevant membership fee. The joining declaration should indicate the Section(s) or regional organisation in the activity of which the member intends to participate. Members may participate in the activities of other HEA organisations as well.
(3) An honorary member is an individual of Hungarian or foreign nationality with outstanding merits achieved as a result of engagement in economic science or implementing any goal of the HEA. Honorary members are elected by the general assembly based on recommendations of the Board. The boards of the HEA’s Sections and organisations may put forward recommendations for the election of honorary members. Honorary members enjoy equal rights to the regular members of the HEA, without obligation to pay membership fee.
(4) A legal member is an entity with legal personality. Legal members are supplied with the HEA’s publications and receive invitations to all events organised by the HEA (legal members in the countryside are invited to regional events, and those in the capital are invited to events held in Budapest). In preparing their work programmes, the HEA organisations seek to accommodate the requests of their respective legal members as far as possible. The membership fee of a legal member is agreed with the representative of the organisation approving the particular membership. The membership rights of a legal member are exercised via a representative.

18. § Rights of members:
• participation in the activity of the relevant Section/organisation;
• involvement in the election of the relevant Section’s/organisation’s board members and representatives delegated to general assemblies;
• founding members, regular members and honorary members may be elected to any position within the HEA or delegated to general assemblies;
• right to visit the premises of the HEA;
• regular written information received on relevant decisions of the HEA’s management bodies;
• access to special offers and discounts of the HEA; no financial allowance provided to members.
Special offers and discounts primarily include opportunities to subscribe to/order journals and books, and to participate in courses and consultations organised by the HEA at reduced price, also covering discounts available to HEA Membership Card holders via Euro Discount Club. (In addition, elected officials may be entitled to remuneration, and those performing outstanding activities may be offered various awards, including money, in accordance with publicly announced rules.)

19. § Obligations of members:
• observing the rules set out in the Articles of Association of the HEA;
• paying regular membership fee.

20. § The membership status shall be terminated by resignation or exclusion, or in the event of death (in case of legal members in the event of cessation without a legal successor), respectively via termination of membership by the Association. If based on the Articles of Association membership should be subject to specific conditions, and a member fails to comply with such conditions, the HEA may terminate the particular member’s status by 30-day written notice.
(1) Termination of membership should be notified by members in a letter dispatched to the specific Section/organisation, addressed to the Board of the HEA. The membership status is terminated on the last day of the month upon submitting the termination notice (or on the last day of the month indicated by the exiting member).
(2) Any serious or repeated violation of the law, the Articles of Association or a decision of the HEA’s General Assembly by a member may result in exclusion proceedings against such member at the initiative of any member or body of the HEA. A member prohibited to participate in public affairs by a final court order may be excluded from membership by the HEA’s Board. Right of defence should be granted prior to exclusion by 8-day written notice. In the event of exclusion the relevant decision should be drawn up in writing along with appropriate justification including any fact and evidence forming basis for exclusion, as well as the applicable remedy options. The excluded member should be notified of such decision.
(3) Appeal against an exclusion decision may be submitted to the General Assembly of the HEA within 15 days of receiving notification in accordance with the HEA’s applicable internal rules.
(4) The Secretariat may deem a membership status inactive if a member fails to comply with the applicable membership fee payment obligation despite a relevant notice, falling behind with fee payments for a period exceeding 12 months.
(5) Inactive members may not exercise any membership rights and may not be elected to hold any function within the HEA.
(6) Inactive members complying with their respective membership fee payment obligations should regain active membership status upon appropriate actions by the Secretariat.

IV. The organisations of the HEA

21. § The Hungarian Economic Association consists of Sections with national competence, as well as regional organisations at county, city and regional level with no independent legal personality. Any member of the HEA may initiate the establishment of further section(s) or organisation(s), subject to availability of minimum ten members, an elected board and approval of the Board of the HEA.

22. § The respective activities of the HEA’s Sections and organisations shall be designed, organised and implemented independently (in accordance with the general principles, goals and rules set out in the Articles of Association), requesting assistance from the HEA’s Secretariat as necessary.

23. § The main body of each Section or organisation shall be the General Assembly with responsibility to elect its board/officials and to determine the framework of activities. The general assembly should be open to all individual and legal members of the specific organisation, and each attending member should be granted one vote. As regards the implementation of general assemblies of the HEA’s Sections and organisations, with particular regard to having a quorum, the rules applicable to national general assemblies should be adopted as appropriate.

24. § Any county, city or regional organisation may have independent financial management, if so intended, under control of the organisation’s secretary. Such organisations shall have responsibility for the preparation of their own budget, which should be submitted to the Secretariat of the HEA in order to verify compliance with the applicable law, as well as the internal management and accounting rules of the Association. The budget of the specific organisation, exclusively verified for the above purpose, should be submitted for approval to the national general assembly.

25. § The President and the Secretary, relying on a Board consisting of an optional number of members, shall control the activity of the respective Section or organisation in view of the decisions of the HEA’s General Assembly and Board.

26. § The organisations may establish their own sections and working committees as deemed appropriate.

27. § If an organisation’s general assembly decides to exit the HEA in order to become an independent entity with a legal personality, any potential asset transfer issues should be decided by the national General Assembly of the HEA based on the proposals of the national and organisation level boards.

V. General Assembly of delegates

28. § The main bodies of the HEA at national level include the General Assembly of delegates, the Board and the Supervisory Committee.

29. § (1) The decision making body of the Association is the General Assembly of delegates, attended by two delegates from each Section and regional organisation of the HEA. At the General Assembly voting right shall only be granted to delegates; the board and members, unless delegated, may participate with a right of consultation only. The meetings of the General Assembly should be public, convened by the Board.
(2) The competences of the General Assembly of delegates include the following:
a) adoption and amendment of the Articles of Association of the HEA;
b) determining the main fields of activity of the HEA;
c) adoption of the annual budget and statements/reports of the HEA (including balance sheet, public benefit report, profit and loss statement and supplementing annexes);
d) discussion and adoption of reports of the HEA’s Board and Supervisory Committee, as well as audit reports;
e) determining membership fees;
f) election of the HEA’s Board, including its President, Vice Presidents and Secretary General, as well as the Chairperson and members of the Supervisory Committee (except for the Youth Committee Chairperson);
g) election of the HEA’s auditor;
h) decision on appeals submitted by members excluded by the Board according to Art. 20 (3);
i) approval of joining/exit decisions of the Association with regard to international professional organisations;
j) decision on merger, dissolution or division (exit) issues;
k) decision on termination of the HEA.

30. § The General Assembly of delegates should be convened annually by the legally specified date available for adopting reports/statements. Additionally, the Board may convene extraordinary meetings at any time. The General Assembly shall be convened by the national Board of the Association if requested by more than one-third of the section/organisation boards of the HEA.
The meetings of the General Assembly of delegates should be convened via invitation 30 days previously, including the name and registered seat of the association, and the date, time, venue and agenda of the specific meeting. For lack of quorum, also the date, time and venue of the recurring meeting should be indicated, along with notification of different rules of quorum and reference to such circumstances. The agenda should be sufficiently detailed in order to allow delegates with a voting right to formulate their respective positions on issues to be discussed. The Association’s members and organisations may request the body or individual convening the General Assembly to supplement the agenda, along with appropriate justification, within 8 days of receiving the specific invitation.
The Board shall have the right to decide on supplementing the agenda. If the Board fails to decide on or rejects such request for supplementing the agenda, the relevant decision shall be made by the General Assembly prior to its resolution adopting the agenda.
A previously announced agenda may only be amended by two-third majority of the votes of delegates attending the meeting of the General Assembly.

31. § The General Assembly of delegates shall have a quorum if 50% of the delegates + 1 individual are present. The decisions of the General Assembly shall be adopted by simple majority of votes. Issues involving amendment of the HEA’s Articles of Association, as well as mergers and dissolutions shall require three-quarter majority determined on the basis of votes cast by delegates with a voting right.
In order to terminate the Association, the relevant decision of the General Assembly shall require three-quarter majority determined on the basis of votes cast by delegates with a voting right.
If a duly convened General Assembly fails to have a quorum, the recurring meeting of the General Assembly shall have a quorum in matters set on the original agenda, irrespective of the number of attending members, if such meeting is convened at least 3, but not more than 15 days later than the original date, and this fact is specified in the invitation dispatched to delegates. In such cases the previously dispatched agenda of the General Assembly convened in this manner may not be extended by additional agenda items.
The meetings of the General Assembly of delegates are chaired by the President. The President may decide to appoint someone else to chair a specific General Assembly meeting. Based on the proposal of the President, the General Assembly shall elect two vote counters from among its attending members by simple majority.
Attending delegates should be registered in an attendance sheet, including their names, membership identification and the eligible number of votes based on the represented regional organisation or section votes. The attendance sheet should be signed by the presiding chair and the minute-taker of the General Assembly.
The meetings of the General Assembly should be recorded, and signed by the presiding chair and the minute-taker, then authenticated by two elected members attending the meeting.
Such records should include the following:
– name and registered seat of the association;
– place, date and time of the meeting;
– names of the presiding chair, the minute-taker and the persons authenticating the minutes;
– main events and proposals brought forward at the General Assembly;
– proposals for decision, adopted decisions, as well as the number of votes and countervotes, and the number of those refraining from voting.

32. § Issues at the meetings of the General Assembly are usually decided by open vote. Secret voting is used in personal matters, and in cases requested by minimum ten percent of the delegates.

33. § The delegates at the General Assembly meetings are entitled to votes according to the number of individual members of the specific section/organisation with duly settled membership fees in the previous year. (The relevant numbers are established by the national Secretariat based on membership fees paid by regular members according to book, notified to the secretary of the specific organisation not later than 8 working days prior to meeting.) If only one of the elected two delegates attends a meeting, the number of eligible votes shall be equal to the membership of the delegating section/organisation. If both elected delegates are present, each of them shall be eligible to half of the votes specified above.
The resolutions of the General Assemblies of delegates shall be registered by an individual appointed by the chair by filing the minutes of meetings in chronological order, also including the date and scope of each resolution, the ratio of votes, as well as the names of delegates voting for or against, or refraining from the specific decision.
The chairperson shall be responsible for communicating the decisions of the General Assemblies to all interested parties in writing, in a certifiable manner. Such decisions shall be published on the website of the Association as well.
A resolution may also be adopted without holding a meeting. Such resolutions shall be initiated by the Board by dispatching the specific draft resolution to the delegates via email. The email addresses of delegates are registered with the Secretariat. The delegates shall be required to return their votes within eight days of receiving the draft resolution. Voters shall confirm the receipt of electronic deliveries dispatched to delegates, other than by automatic email confirmation, which shall be recorded both in electronic and paper format.
In the event of adopting a resolution without a meeting, the provisions of the Articles of Association shall be applicable to quorum and voting matters with the exception that the resolution process shall be valid if the number of votes returned to Administration is equivalent to, or more, than the attendance requirement of delegates with voting right in the event of holding a meeting with quorum.
If any of the delegates requires a meeting, the General Assembly shall be convened. Votes received by electronic means shall be recorded (saved) electronically. The receipt of electronic votes shall be confirmed to voters electronically without delay, other than by automatic email confirmation, which shall be recorded both in electronic and paper format. The outcome of the voting process shall be established by the Administration within three days of the deadline set for returning votes, or if all the votes are received before the set deadline, within three days of receiving the last vote, and the outcome shall be communicated to the delegates within a period of additional three days.
The received votes shall be recorded in paper format on the first working day upon the set deadline in a manner that the document containing the printed vote shall specify the date and time of dispatch, clearly indicating the sender and the content of the vote as well. The date of adopting the resolution shall be the deadline established for voting, or if all the votes are received before the set deadline, it shall be the date of receiving the last vote.
Access to documents produced in relation to the Association’s operation shall be free to anyone at the registered seat of the HEA upon prior arrangement with the HEA’s President.

34. § The persons to be elected at a General Assembly of delegates shall be recommended by a nominating committee previously appointed by the Board. The chair of the committee shall communicate its proposals to the delegates at least four weeks before the General Assembly meeting, providing an opportunity for delegates to request opinion from the board or members of their respective Section/organisation.

35. § (1) Any president/chairperson, official or member of a managing body of the HEA may only be elected subject to the provisions of Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations applicable to conflict of interest. Each elected official shall issue a written declaration prior to election stating that no relevant conflict of interest specified in Act CLXXV of 2011 exists.
No managing body of the Association may have an individual to be president or official for a period of three years upon termination of a non-profit organisation if that individual previously took a senior official position with that non-profit organisation for a period of minimum one year in its final two years prior to termination, and
a) it ceased to exist without a legal successor in a way that it had failed to settle the applicable tax and custom payment obligations registered with the tax and customs authorities,
b) against which significant tax shortage had been disclosed by the competent public tax and customs authorities,
c) against which business closure measure or equivalent penalty had been applied by the competent public tax and customs authorities,
d) whose tax number had been suspended or withdrawn by the competent public tax and customs authorities based on the law establishing the order of taxation.
Furthermore, no managing body of the Association may have an individual to be president or official if that person
a) had been given a custodial sentence in a final order due to committing a criminal offence, until relieved of the adverse consequences of such offence,
b) had been banned from his occupation related to the specific organisation’s activity in a final order, under the effect of such order,
c) had been banned from his activity as senior official, for the period applicable to such prohibition.
A senior official, or an individual nominated to take such position shall be obliged to inform all concerned non-profit organisations in advance if such position is simultaneously filled at another non-profit organisation as well.
(2) An individual may not participate in the decision making process of a managing body if based on the specific decision he, or his close relative or partner (a) would be relieved of any obligation or liability, or (b) would enjoy any other benefit, or would otherwise have an interest in a legal transaction to be concluded. A non-financial service freely available to anyone in the framework of targeted allowance by a non-profit organisation, or a targeted allowance available to members of a social organisation based on membership status under the applicable deed of foundation shall not be deemed to be a benefit,
furthermore, exclusion shall be applied to any individual who
a) based on the specific decision would be party to an agreement;
b) based on the specific decision would be subject to a legal action;
c) has a relative interested in the specific decision, who is not a member or founder of the association;
d) is linked to another organisation interested in the specific decision based on a relationship involving majority influence; or
e) is otherwise personally interested in the specific decision.
Any individual with an interest specified above shall be ignored for the purpose of establishing quorum.

VI. The Board

36. § In the interim periods between General Assembly meetings the main body of the Association shall be the Board, consisting of minimum 18, but not more than 22 members elected by the General Assembly of delegates, as well as the lifetime honorary president(s) of the HEA and the Chairperson of the Youth Committee. The Board is the administrative body of the Association. The delegates elect the Board and all the officials for a period of three years. Each elected member shall issue a written declaration stating acceptance of the specific mandate and non-existence of any legally specified conflict of interest detailed above. The mandates shall be valid from the day upon election until the next re-election date.

37. § The duties of the HEA’s Board include:
• managing the activity of the HEA in the interim periods between General Assembly meetings;
• deciding in matters brought before the Board;
• deciding in matters involving joining or exiting other national and international organisations and associations by the HEA and its organisations;
• harmonising the international activities of the organisations of the HEA.

38. § The Board should have at least four meetings annually. The meetings of the Board should be convened by the Secretary General by sending personal invitation to each Board member, which should also include the proposed agenda. The Board meetings shall be open to any interested parties. Issues may be added to the agenda even in the course of Board meetings subject to support by a simple majority of attending members. The Board shall have a quorum if minimum 50% of members + 1 individual are present. For the purpose of having a quorum a Board member working abroad permanently should not be taken into consideration. The number of Board members working abroad permanently, without being considered for the purpose of having a quorum, should not be more than one-quarter of the Board’s membership. The decisions of the Board shall be adopted by a simple majority of attending members (50% + 1 person). In order to decide on excluding a Board member two-third majority of all attending members shall be required.
In matters requiring urgent decision or in otherwise justified cases the Board may adopt decisions without holding a meeting. In such cases the Board members shall be required to express opinion by fax of electronic mail.

39. § The Board meetings shall be recorded indicating the ratio of votes for each adopted decision. The minutes of the Board meetings, apart from members of the Board, shall be distributed to the presidents, secretaries and members of all sections and organisations of the HEA.
The individuals authorised to represent the Board/Association shall be the President and the Secretary General of the HEA.
Signing on behalf of the Association shall be performed in a manner that all manually written, typed, printed or pre-printed documents shall be signed independently by an authorised representative, i.e. the President or the Secretary General of the HEA.

40. § President of the HEA
The President shall be responsible for publicly representing the HEA and presiding at the HEA’s national Board meetings and General Assemblies of delegates. Further duties of the President include announcing resolutions at meetings and establishing the number of votes supporting or rejecting each decision, as well as the number of those refraining from voting. In case of absence the President may be substituted by the Secretary General or a Vice President. A President may be re-elected twice. For a second re-election three-quarter majority shall be required. The relevant paragraph of the Articles of Association may only be amended by a unanimous vote. The President shall have authority to represent the Association individually.

41. § Secretary General of the HEA
The Secretary General shall be authorised to represent the HEA in relation to other organisations and authorities. The Secretary General shall be responsible for ensuring the functioning of the HEA, in addition to continually organising Board activities, preparing the meetings of the HEA’s managing bodies, organising the implementation of decisions and verifying their execution. Employer’s rights with regard to employees of the HEA shall be exercised by the Secretary General. The Secretary General shall have authority to represent the Association individually. The Secretary General, also a member of the Board, shall be elected by the General Assembly of delegates by simple majority for a period of 3 years.

42. § Vice Presidents
The HEA shall have six Vice Presidents. The Vice Presidents may act as substitutes for the President as necessary, at the request of the Board or the President, and may perform duties delegated to them by the Board.

43. § Deputy Secretary General
The Board may decide to elect a Deputy Secretary General from among its members. The Deputy Secretary General shall assist the activity of, or substitute for the Secretary General, without authority to represent the Association individually.

44. § Chairperson of the HEA’s Youth Committee
The Chairperson of the Youth Committee shall be responsible for managing the work of the YC made up by one delegate from each HEA Section/organisation, in addition to organising services provided by the HEA for young economists. The Committee shall elect its own Chair, whose mandate shall be valid until the next re-election meeting of the HEA.

45. § The administration of the HEA shall be managed by the Head of Secretariat employed by the Association, in relation to whom employer’s rights shall be exercised by the Secretary General of the HEA. The scope of duties of the Head of Secretariat shall be detailed in a job description.

46. § The activities of the HEA’s Sections and organisations shall be assisted by the Secretariat via professional, organisational and accounting services.

VII. Supervisory Committee

47. § The Supervisory Committee shall verify the lawfulness of the HEA’s activity. The Supervisory Committee shall have at least one meeting annually, and it shall report to the General Assembly of delegates on the operation of the HEA’s management bodies. The Supervisory Committee shall have competence in accordance with Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations.

48. § The Supervisory Committee consists of a Chairperson and six members. The Supervisory Committee’s Chairperson and members shall be elected by the General Assembly of delegates for a period of three years from among the members of the Association. The Committee’s Chairperson and members may be elected in view of the provisions of Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations. The Supervisory Committee’s Chairperson and members shall be regularly invited to the Board meetings of the HEA with right of consultation.

49. § The meetings of the Supervisory Committee shall be convened by its Chair, who shall also make proposal for the agenda. The decisions of the Supervisory Committee shall be adopted by open vote, by way of simple majority. In order to have a quorum minimum four members should be present. The rules of procedure of the Supervisory Committee shall otherwise be established by itself.
VIII. Auditor of the HEA

50. § The auditor of the HEA shall be elected by the General Assembly of delegates for a period of three years, along with a decision regarding remuneration.

51. § The auditor shall perform duties in accordance with the applicable laws and regulations. The auditor shall submit his annual report to the Head of Secretariat of the HEA not later than 20 days before the date of the specific General Assembly meeting.

52. § The rules of conflict of interest applicable to members of the management bodies shall be applied to the auditor as well.

IX. Financial management of the Association

53. § The financial management of the HEA shall be performed in accordance with Articles 42-46 of Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations. The detailed rules of financial management shall be contained in the Financial Management Rules approved by the Board.

54. § The revenues of the HEA shall result from
• membership fees and financial support provided by natural and legal persons;
• potential state funding;
• funding received from the Hungarian Academy of Sciences;
• donations offered by foundations;
• other sources (participation fees of lectures, courses and conferences, publication of books and journals, club membership fees, etc.); and
• revenues from business operations.
The HEA shall not accept donation or funding from any political party including their foundations, or any donation or funding whose purposes and conditions would be contrary to the goals established in the Articles of Association.

55. § The fundamental requirements regarding registration and reporting duties in relation to the financial management of the HEA shall be governed by Act CLXXV of 2011 on freedom of association, non-profit status and the operation and support of civil organisations, set out in more detail in the Association’s internal regulations. Any investment activities of the HEA shall be performed according to the investment regulation adopted, and amended exclusively, by the General Assembly of delegates.

X. Termination of the Association

56. § The Hungarian Economic Association shall be terminated subject to a dissolution decision adopted by the General Assembly of delegates by two-third majority of votes, in the event of merger with another association decided by the General Assembly, or dissolution of the HEA ordered by a court ruling.

XI. Closing provision

57. § The Articles of Association was initially adopted by the General Assembly of the Hungarian Economic Association on 11 March 1990, entering into force upon adoption. The current Articles of Association was finally amended and adopted in a consolidated format by the General Assembly of delegates on 25 May 2017.