Employee Share Plans in Europe and the USA - Sorainen
Employee Share Plans in Europe and the USA - Sorainen
Employee Share Plans in Europe and the USA - Sorainen
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<strong>Employee</strong> <strong>Share</strong> <strong>Plans</strong> <strong>in</strong> <strong>Europe</strong> <strong>and</strong> <strong>the</strong> <strong>USA</strong>Hungarywhen he has acquired <strong>the</strong> rights (dividends, vot<strong>in</strong>g rights etc.) attach<strong>in</strong>g to thoseshares.8. Data protection8.1 As a general rule, <strong>the</strong> transmission of personal data out of Hungary requires <strong>the</strong>express consent (<strong>in</strong> writ<strong>in</strong>g) of <strong>the</strong> <strong>in</strong>dividual to whom <strong>the</strong> data relates. 2 This ruleapplies <strong>in</strong> relation to an employer when transferr<strong>in</strong>g data <strong>in</strong> relation to employees<strong>and</strong> <strong>the</strong> employees should be <strong>in</strong>formed of <strong>the</strong> purpose of <strong>the</strong> data transmission.However, <strong>in</strong>formation <strong>and</strong> data concern<strong>in</strong>g employees may be used for statisticalpurposes without obta<strong>in</strong><strong>in</strong>g consent provided it is used <strong>in</strong> a manner thatprecludes identification of <strong>the</strong> relevant employees.8.2 The employer must notify <strong>the</strong> Hungarian Data Commissioner of <strong>the</strong> relevant datatransfers. 39. Employment lawInformation regard<strong>in</strong>g <strong>the</strong> terms of <strong>the</strong> employee share plan to be offered toemployees should be provided to <strong>the</strong> local works council on <strong>the</strong> basis that itprovides an employment-related benefit that is an <strong>in</strong>centive. 4234In relation to employees this consent may be <strong>in</strong>corporated <strong>in</strong> <strong>the</strong> m<strong>and</strong>ate form for <strong>the</strong> reservation <strong>and</strong>subscription of shares.Please note that this is a simple notification (that may be made by fill<strong>in</strong>g out a form) <strong>and</strong> no formalconsent/authorisation of <strong>the</strong> Data Commissioner is required.The works council is required to provide its op<strong>in</strong>ion on <strong>the</strong> arrangements with<strong>in</strong> 15 days from <strong>the</strong>notification. However, <strong>the</strong> Company is not obliged to <strong>in</strong>to take <strong>the</strong> op<strong>in</strong>ion <strong>in</strong>to account. If <strong>the</strong>Company does not ask for <strong>the</strong> op<strong>in</strong>ion of <strong>the</strong> works council <strong>the</strong> action of <strong>the</strong> Company will be deemed<strong>in</strong>valid <strong>and</strong> <strong>the</strong> workers' council may challenge it before <strong>the</strong> labour courts. The forego<strong>in</strong>g rule is onlyrelevant <strong>in</strong> cases where <strong>the</strong> company issues shares directly to its employees. It is not relevant ifshares <strong>in</strong> a parent entity of <strong>the</strong> company are offered to <strong>the</strong> employees of <strong>the</strong> company by such parentcompany, <strong>in</strong> which case <strong>the</strong> company is under a mere <strong>in</strong>form<strong>in</strong>g requirement towards <strong>the</strong> works councilabout <strong>the</strong> share issuance tak<strong>in</strong>g place at a parent level.UK/1729295/03 99 September 2010
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