The first Shareholders’ Meeting of the Magyar Nemzeti Bank
The statutory meeting of the first independent Hungarian central bank, Magyar Nemzeti Bank was convened on 24 May 1924 in the banquet hall of the Hungarian Academy of Sciences. The foundation was preceded by lengthy preparations with debates and involving international experts.
Act V of 1924 provided for the foundation of the bank. The bank was founded as a joint-stock company with a share capital of 30 million aranykorona, and shares in the value of 100 aranykorona each were issued. The quorum for a statutory meeting required that at least one-third of the subscribed capital be represented, but both the subscription of the entire capital and the payment of at least 50 % of the nominal value had to be verified. The remaining 50 % had to be paid within two months. Payment was accepted in aranykorona coins or other foreign gold coins in circulation. The subscription announcement had been published in various media; the subscription period spanned from 28 April to 7 May. Subscriptions were available in the capital, in the countryside, and at five locations abroad. Shares were oversubscribed despite the short period available and a strike by printing houses in Budapest during the subscription period. Despite original objectives, the subscribers included banks, financial institutions, industrial companies, investors, Hungarian and foreign individuals. The state, i.e. the Treasury, contributed more than planned to the subscription (almost 40 %). As a result, the invitation to the Shareholders’ Meeting was published in the media 8 days prior to the Meeting on behalf of Minister of Finance, Frigyes Korányi.
The Magyar Nemzeti Bank was established, whose key role laid down in the Statutes is as follows: “Magyar Nemzeti Bank shall regulate the circulation of money in the territory of Hungary, facilitate the settlement of payments and ensure the exploitation of available assets, in particular, prepare cash payments (the exchange of banknotes for ores) by collecting claims for gold and other convertible currencies (foreign currencies) and ensure their preservation after cash payments have been legally initiated.”