The coronavirus pandemic has had a serious impact on economic life, and due to the reasonable and understandable caution of economic actors, organising the conclusion of transactions has become more difficult. There are many occasions when the creation of certain documents is unavoidable; one only has to think of the adoption of annual financial statements, which will soon become due. However, due to the regulation of electronic signatures, there is a widely available opportunity for all parties to sign documents on a computer or smartphone, avoiding handshakes and any other personal contact.
In recent years, the use of electronic signatures has also begun to spread rapidly in Hungary. The appropriate tool makes it possible to make a legal declaration electronically that is equivalent to one made in writing. In addition to its basic advantages — for example, this solution bridges geographical distance and it is sufficient to sign a single “copy”, which can then be duplicated — during a widespread pandemic, it can be particularly helpful that businesses are able to manage their affairs without contact.
There are several types of electronic signatures, depending, among other things, on how secure they are considered to be. From this perspective, the best-known in business life is the qualified electronic signature, which has the same legal effect as a handwritten signature, and in certain respects may even have greater evidentiary force. A Hungarian qualified electronic signature is recognised as a qualified electronic signature in all EU Member States.
A contract can be signed electronically effectively if all parties choose this method and the parties have a certificate issued by a trust service provider. This certificate ensures that the electronic signatures can be clearly linked to specific persons.
In Hungary, Microsec Zrt., Netlock Kft. and NISZ Zrt. are the trust service providers that issue qualified electronic signatures. From the practice of our office, we are also familiar with the foreign trust service provider Evrotrust Technologies AD, which offers signing through a smartphone application after video identification. EvroTrust, which is also integrated into the TrustChain contract-signing platform, therefore enables electronic signing of contracts without in-person identification.
The representative of a company may also sign electronically if they have an electronic certificate issued by one of the above — or another — trust service providers, and if this is included in the company register. An electronic signature with a certificate registered in the company register qualifies as the authorised company signature of the person entitled to sign on behalf of the company. In order for the certificate to be entered in the company register, company registration proceedings must be initiated, in which the electronic certificate issued by one of the trust service providers, in .cer file format, must be submitted to the company court.
At EU level, it is a fundamental principle that the legal effect of an electronic signature and its admissibility as evidence in court proceedings may not be denied solely because it is in electronic form.
Accordingly, electronic signatures may be used in the course of contract signing and in court proceedings, as well as when adopting corporate decisions and in company registration proceedings.
For example, if members’ meeting decisions are required for the adoption of financial statements, this can also be done safely in this manner. Notaries can prepare paper-based certified copies of electronically signed documents, resulting in a tangible copy that has the same legal value as the original electronic document. This can also bridge the gap where paper-based copies of the document are required.