1. Name and Headquarters of the Federation

Name of the Federation: Magyar Fényreklámgyártók Szövetsége

Foreign (English) name of the Federation: Hungarian Sign Federation

1.3. The Federation is a voluntarily founded legal entity with an own self-government. The Federation is not involved in politics, does not nominate candidates for elections, its organization is independent of political parties and the Federation does not provide any financial support to such entities.

1.4. Headquarter of the Federation: Soroksári út 158/A, Budapest, Hungary H-1095.

2. Objectives of the Federation

Bringing closer the representatives of illuminated and non-illuminated advertising sign industry, improving its professional standards in Hungary, as well as aiding its expansion in Europe in order to manufacture gradually more and more well-designed, high technical quality Hungarian products (advert sign/illuminated sign) that are excellent inform the aspect of visual culture and valuable in design for both Hungarian and European markets. The goal is to manufacture such products that reach their target audience more efficiently, that are environment-friendly in terms of production and operation, economical, long-lasting and sustainable.

A forum aiding technical, environmental and economic improvement where

the stakeholder can gather information on new developments, technological innovations, news of the profession, standards and authority expectations that encourage establishing collaborations and professional relationships,

where stakeholders can gain experience and information for free, aim for common objectives, programs that can be carried out together.

Promoting the interests of Hungarian illuminated and non-illuminated advertising sign manufacturers at ESF, as well as at European tenders and during discussions with authorities.

Cooperation with other professional organizations.

Promoting, securing and improving legal and economic interests of the members.

Providing a base for fundamental values, ethical standards and professional and technical criteria system of advertising sign manufacturing as a profession.

Creating a professional terminology and bringing it to a common platform, as well as spreading and passing it into colloquial language.

Formation of a professional accreditation system, which categorizes Hungarian manufacturers objectively based on strict professional standards, and provide recommendations of worthy companies for major customers at tenders.

Establishing and developing a foundation for professional education/further education system.

3. Members of the Federation

3.1. Any legal entity can be a member of the Federation that has its own manufacturing capabilities, its headquarter is in Hungary, is not under liquidation proceeding, has been operating for at least three years, has at least 10 employees, is debt-free on the debtors list/has no tax debt/ and is recommended by at least three members, as long as it agrees with the objectives and principles of operation of the Federation and accepts the Articles of Association.

3.2. Member candidates can declare their intention to join to the presidency of the Federation (”Presidency”). The General Assembly of the Federation (”General Assembly”) decides on the registration of the member by a majority of two-thirds.

3.3. The members of the Federation pay membership fees. The amount of the fee is decided by the General Assembly.

The rights of members:

• The members have voting rights and the right of proposition in cases requiring the decision of the Federation,
• Can be appointed for offices and can vote for office-holders,
• Can participate in and form an opinion at the events of the Federation,
• Are entitled to the services of the Federation,
• Are obliged to pay a membership fee.

3.5. The Federation membership ceases when:

• the member resigns,
• the Federation terminates the legal relationship,
• the member is excluded,
• the member is terminated without a legal successor.

3.6. If the Articles of Federation stipulates conditions for the membership and the member does not meet these conditions, then the Federation may terminate the legal relationship of the member on a 30-day notice. The termination is resolved by the General Assembly.

3.7. If the member does not pay the membership fee within 2 months after the deadline, the Presidency sends a reminder to the member. If the member does not settle the membership fee within thirty (30) days from the delivery date of the reminder, then the membership will be terminated. The reminder shall contain the legal consequences – namely the termination of membership in case of exceeding the agreed deadlines – of repeated non-payment.

3.8. If the member exhibits gravely offensive or repeated behavior against the applicable legal regulations, the Articles of Association or General Assembly decisions, the General Assembly can – by the proposal of any member or member organization of the Federation – initiate an exclusion proceeding against the member.

Any member or federation body has the right to propose an exclusion proceeding at the Presidency in 30 days from the date when the justifying reason became known. The Presidency makes a decision on the exclusion in 15 days from the date of proposal.

The Presidency acts at first instance in the exclusion proceeding and the General Assembly acts at second instance. The General Assembly is obliged to make a decision on the appeal lodged against the exclusion in 15 (fifteen) days from the date of receipt, at its next session.

The exclusion is decided exclusively by the General Assembly based on the presentation of the Presidency in case of a proposition to exclude the office-holder.

The person involved shall be informed about the Presidency session in the matter of exclusion via registered mail or in writing with any proof of receipt in such way, that the person involved should receive the notice at least 8 days prior to the session.

The Presidency session in the matter of exclusion can be held in the absence of the person involved, if he/she has been noticed formally, and he/she has not excused himself/herself from the absence previously in writing with sound reasons, or requested in writing to hold the session in his/her absence. The Presidency makes the decision on exclusion by simple majority.

The person involved can propose his/her defense orally at the Presidency session in the matter of exclusion or in writing not later than the date of the session.

All decisions made in the matter of exclusion shall be in writing and shall include a reasoning.

The reasoning shall include the facts supporting the exclusion and its evidences, as well as the information on legal remedy. The person involved shall be informed about the decision on the exclusion via registered mail or in writing with any proof of receipt. The person involved can lodge an appeal in writing with the General Assembly within 15 days after the date of notice on the decision of exclusion by the Presidency, while he/she can seek legal remedy at the court having jurisdiction in the area of the headquarters of the Federation in case of violation of the law in 30 days from the date of the decision made by the General Assembly.

The General Assembly makes the decision on the exclusion by qualified majority that is a majority of two-thirds of the present members with voting rights.

The membership of the member ceases on the day when the decision of exclusion made by the Presidency takes legal effect, or in case of lodging an appeal, if the General Assembly affirms the exclusion decision made by the Presidency – or in case of legal remedy sought at court, if it affirms the decision of exclusion made by the General Assembly – on the day when the decision of exclusion was made by the General Assembly.

The decision of exclusion in the proceeding of exclusion can only be made after the person involved was enabled to bring forward his/her defense and was informed about attenuating or extenuating circumstances.

The decision made on exclusion of the member shall be written and shall include reasoning; the reasoning shall include the facts supporting the exclusion and its evidences, as well as the information on legal remedy. The member shall be informed about the decision of exclusion.

3.10. The General Assembly makes a decision on termination of membership.

4. The General Assembly

4.1. The supreme decision-making body of the Federation is the General Assembly. The General Assembly consists of all of the members that can make decisions in every aspect related to the Federation. The session of the General Assembly is open to public.

4.2. The following fall within the exclusive scope of authority of the General Assembly:

• Establishment and modification of the Articles of Federation,
• Drawing up the budget,
• Approval of annual reports,
• Appointment and revocation of Presidency and Supervisory Board members,
• Establishment of member registry,
• Fusion with other associations or declaration of dissolution,
• Determining the amount of membership fee,
• Decision made on termination of membership,
• All issues assigned to the exclusive scope of authority of the General Assembly by the Articles of Association or any legal regulations.

4.3. The Presidency is obliged to call the General Assembly at least once a year. A written invitation shall be sent to the members for the convention of the General Assembly, including the agenda items at least fifteen (15) days prior to the commencement thereof.

4.4. The invitation shall include the notice that if General Assembly convened at the original date has no quorum, the repeated General Assembly convened at a later date – in respect of the issues in the original agenda items – shall be considered as capable of making a decision regardless of the number of members present.

4.5. The General Assembly can make a decision on an issue not included in the agenda items only if all members are present and approve of the inclusion in the agenda. The General Assembly shall be convened, if the court ordains, or if at least 10% of the members – with providing reason and purpose – wish to do so.

4.6. All members of the Federation can take part in the General Assembly with voting rights. All members are entitled to one vote each.

4.7. The General Assembly has quorum, if at least 50% of the authorized representatives of the members and one additional person show up in person. In case of having no quorum, a repeated General Assembly shall be convened with the same agenda in at least sixty (60) days, which then has quorum concerning the same agenda regardless of the number of persons present.

4.8. The General Assembly shall appoint a Chair, a secretary of meeting and two attesting members.

4.9. The General Assembly makes decisions in general via open vote by simple majority.

4.10. The General Assembly approves the annual report in accordance with the general rules mentioned above, that is by simple majority.

4.11. The General Assembly makes decisions by secret ballot in personal issues, and in any other issue, if it is proposed by at least 1/3 of the voters.

4.12. A majority of two-thirds is required for modification of the Articles of Association and declaration of merger, separation or dissolution. In case of tied votes, the vote of the Chair decides.

Making decisions without holding a session.

4.13. The Articles of Association enables making decisions without holding a session. Such decision-making is proposed by the Presidency by sending the draft resolutions to the members via e-mail. The members shall be provided with a deadline of at least 8 days upon receipt of the scheme to be able to send their votes to the Presidency via e-mail.

4.14. In case of making a decision without holding a session, the rules of the Articles of Association on having a quorum and voting shall be applied with such distinction, that the proceeding has quorum, if as many votes are sent to the administration as the number of members having voting rights required for having quorum would be present, if a session was held.

4.15. If any of the members wishes to hold a session, the General Assembly shall be called by the Presidency.

4.16. The Presidency determines the results of votes in three days after the agreed deadline – if the votes of all members are received before the deadline, then in three days after the date of the last vote – and informs the members about the results in additional three days. The day of decision-making is the date of the deadline, if all votes are received before, then it is the date of the last vote.

5. The Presidency, President

5.1. The Presidency of the Federation consists of 3 members.

5.2. The members of the Presidency: the president (”President”), the vice-president (”Vice-President”) and the secretary-general (”Secretary-General”).

5.3. The members of the Presidency are appointed by the General Assembly, by secret ballot, for a two (2) year term.

5.4. In case of termination of the term of office by any reasons, the General Assembly appoints a new member.

5.5. The Presidency is the executive body of the Federation. It operates by its own rules of procedure. The Presidency, under the leadership of the President, takes care of observation of the Articles of Association, the execution of General Assembly resolutions and coordinates the activities of members.

5.6. The members of the Presidency can only act in the interest of the Federation during their activities concerning the Federation, and cannot promote economic interests directly or indirectly outside the Federation.

5.7. The Federation is represented by the President in court or other authorities and administrative bodies, as well as in other organizations or third parties. In case of any hindrance he can authorize the Vice-President with these duties.

5.8. The President’s signature is required for making transactions on the bank account of the Federation.

5.9. The Presidency holds meetings if required by the circumstances, but at least quarterly. The meeting is called by the President with the notice of agenda, at least eight (8) days beforehand. The convention of the Presidency – with the notice of agenda – can be proposed by any of the Presidency members. If the President does not take measures to convene in eight (8) days, the proposing member or members are authorized to call the Presidency meeting. If the meeting is not called formally, the Presidency can make decisions only when all members are present and no objections are made against the decision-making. The Presidency meeting is open to public.

5.10. The Presidency makes its decisions by simple majority of the members, by open vote. The Presidency can ordain secret ballot in defined issues of its agenda and qualified decision-making by majority of two-thirds. The Presidency has quorum, if at least two members are present. In case of tied votes, the proposition is considered as rejected.

5.11. Those persons, close relatives of persons or life partners of persons cannot participate in the decision-making who: are excused of any obligations or duties, or gain any other benefit, or have any other interest in entering the legal transaction in accordance with the decision.

Non-monetary services that can be used by anyone without obligations in the form of allowances included in the objectives of the Federation, and the benefits that Federation members are provided with by their membership, which are in accordance with the Articles of Association objectives, shall not be considered as benefits.

5.12. The Articles of Association enables making decisions without holding a meeting. Such decision-making is proposed by the President by sending the scheme of the decision to the Presidency members via e-mail. The Presidency members shall be provided with a deadline of at least 8 days upon receipt of the draft resolutions to be able to send their votes to the President via e-mail.

5.13. In case of making a decision without holding a meeting, the rules of the Articles of Association on having a quorum and voting shall be applied.

5.14. If any of the Presidency members wishes to hold a meeting, the Presidency meeting shall be convened by the President.

5.15. The President determines the results of votes within three days after the agreed deadline – if the votes of all members are received before the deadline, then within three days after the date of the last vote – and informs the Presidency members about the results in additional three days. The day of decision-making is the date of the deadline, if all votes are received before, then it is the date of the last vote.

5.16. The Presidency reports to the regular meeting of the General Assembly once a year and makes the annual report of the Federation.

5.17. All members of the Federation can make propositions and comments to the President, as well as to the Presidency.

5.18. The term of the leading office-holders terminates by the expiry of term, revocation, resignation or passing away. If the term of the President terminates or the number of members of the Presidency decreases by one-third for any reason, the General Assembly appoints a new Presidency.

5.19. The duties and scope of authority of the President:

• Preparation and convention of the General Assembly and Presidency meetings,
• Representation of the Federation,
• Supervising the execution of decisions made by the Articles of Association, the General Assembly and the Presidency,
• Leading the activities and management of the Federation,
• Taking care of the keeping of minutes,
• Carrying out all tasks assigned to his/her scope of authority by legal regulations, the Articles of Association, the General Assembly or the Presidency.

5.20. The duties and scope of authority of the Vice-President:

• Performing the duties of the President in case of his/her absence or prevention on the President’s behalf,
• Keeping the registries of the Federation,
• Ensuring the  exercising of the right of inspection of the documentation of the Federation,
• Dealing with the correspondence of the Federation.

5.21. The duties and scope of authority of the Secretary-General:

• Dealing with the petty cash and the bank account of the Federation and performing tasks related to the issues of orders for payments and disbursements.
• Constantly registering and supervising the income from the membership fee.
• Providing regular information on the budget of the Federation.
• Providing advance payments for the persons organizing events, if necessary. Settling the accounts after events, checks the submitted accounts.
• Registering the movable properties and equipment of the Federation, drawing up inventory annually.
• The Secretary-General is a full member of the Presidency.

6. The Supervisory Board

The General Assembly appoints a Supervisory Board consisting of three members, which is accountable to the General Assembly. The Supervisory Board appoints its president from its own members. It reports annually on its activities to the General Assembly. The members of the Supervisory Board are appointed for two-year terms.

The duty of the Supervisory Board is the supervision of the Federation operation complying with legal regulations and the Articles of Association and administration of assets, as well as providing a resolution in ethical issues. Under the administration of assets of the Federation specifically examines the execution and management of decisions.

The members of the Supervisory Board can only act in the interest of the Federation during their activities concerning thereof, and cannot promote economic interests directly or indirectly outside the Federation.

The Supervisory Board forms an opinion in front of the General Assembly on the annual report of the Presidency, the proposition of approving the annual budget and the report on the execution of budget.

Any of the members can propose the proceeding of the Supervisory Board. In this case, the Supervisory Board makes a report on its proceedings and presents it to the General Assembly. The General Assembly makes a decision on the report of the Supervisory Board.

The Supervisory Board can request a report from the leading office-holders and can inspect the documents of the Federation. All members of the Federation are obliged to promote the operation of the Supervisory Board complying with the Articles of Association.

If the Supervisory Board detects minor faults, it shall draw attention thereto. The Board is obliged to inform the President of the Federation and the Presidency – as well as the General Assembly, if the issue falls within the scope of authority of the General Assembly, and propose the convention thereof, if it comes to its attention that a breach of law or such an event took place that gravely affects the interests of the organization during the operation of the Federation, which necessitates the decision-making of the

Presidency or of the General Assembly in terminating or averting or mitigating the consequences thereof;

A fact arises substantiating the liability leading office-holders.

The Presidency and the General Assembly shall be called upon the proposition of the Supervisory Board, in thirty days from the date of the proposition. In case of exceeding this deadline, the Supervisory Board is also authorized to call the leading body. If the Presidency or the General Assembly does not take measures necessary for restoring legal operation, the Supervisory Board informs the body ensuring legal supervision immediately.

7. Rules applying to decisions and services provided by the Federation

7.1. The President registers the decisions of the General Assembly and the Presidency in the Book of Resolutions. The resolutions shall have a file number, the first part of which is an increasing serial number starting from I, with a break of decision date (year, month, day), and designated if it is a General Assembly decision (GA Dec.) or a Presidency decision (Pres. Dec.). The full content of the decision shall be registered in the Book of Resolutions, as well as the date of entry into force, the duration, and the majority by which it was made.

7.2. The Presidency notifies the persons involved immediately about the decisions of the General Assembly and the Presidency. The notification can take place via telefax, e-mail or registered delivery.

7.3. The Federation ensures that anyone can inspect the Book of Resolutions and other public documents of the Federation, and can make a photocopy – at their own expense – of the inspected documents.

7.4. The inspection of the documents shall be previously requested in writing with defining the group of documents. The Federation ensures the inspection – after a previously discussed date – in the shortest time at its headquarters.

7.5. The President of the Federation can deny the inspection of a defined group of documents from an adverse party in legal dispute with the Federation, furthermore, if the inspection of the documents affects the interests of the Federation.

7.6. The benefits and services complying with the Federation objectives provided by the Federation can be consulted by anyone.

7.7. The information on the services of the Federation is available at:

• Announcements and information booklets are available at the Federation headquarters,
• Brochures, informative publications, leaflets are published by the Federation,
• Other activities of publicity and campaign are launched by the Federation.

7.8 Information on the use of Federation services is available in the announcements posted by the Presidency at the headquarters, as well as in the information booklets and leaflets published by the Federation.

8. Management of the Federation

8.1. The income of the Federation may originate from:

Membership fees

Revenues of economic and entrepreneurial activities (providing services);

Financial assistance:
Through tenders or financial assistance by individual decisions;
Structural funds of the European Union, or Cohesion Fund and financial support from the budget;
Financial support of the budget of the European Union, other country or international organization;
Defined percentage of personal income tax remitted at the order of the taxpayer;
The counter value of public service contracts concluded with the state;
Donations received from other organizations or private persons;
Other income not included in a)-f).

8.2. The Federation performs entrepreneurial activities only secondarily, for reaching its goals and these entrepreneurial activities shall not jeopardize the goals. The profit arising from management is not shared among the members, the Federation uses it only for its own purposes.

8.3. The Federation registers the incomes and expenses from activities complying with the objectives and entrepreneurial activities separately.

9. Termination of the Federation

9.1. The Federation terminates, if the General Assembly declares its dissolution or fusion with other federations, or dissolved by court or declares its termination.

10. Other provisions

10.1. The Federation is established by registration.

10.2. The provisions of Act V of 2013 on the Civil Code and Act CLXXV of 2011 on the Right of Association, Non-profit Status, and the Operation and Funding of Civil Society Organizations are authoritative in the issues not regulated by this Articles of Association.