Amendment to the Polish Building Act: Simplification and Expedition of Procedures

construction project

On September 19, 2020, most provisions of an extensive amendment to the Construction Law took effect. The amendment introduces very important changes from the investors’ point of view, both those considering and already pursuing their investments, and those whose projects have long been completed. The new regulations were introduced via the Act of February 2020 amending the Construction Law Act.

Primarily, the amendment is meant to simplify and expedite the investment and construction process, as well as to ensure greater stability of the law and administrative authorities’ decisions. The most significant changes are discussed below. Continue Reading

Poland’s Simplified Restructuring Proceeding Takes Effect

Dictionary Series : Legislation

As previewed in our prior post, Poland’s simplified restructuring proceeding (uproszczone postępowanie restrukturyzacyjne) is now in effect. The enabling legislation – with only minor changes from the description in our prior post affecting such restructurings – was finally adopted on 19 June 2020, signed into law on 23 June 2020 and took effect the same day. Debtors have until 30 June 2021 to retain a restructuring advisor and commence the new proceeding, which operates almost entirely out-of-court.

All details available in our previous article.

Polish Government Adopts Stricter Control over Private Investments

Updated on June 23, 2020

Like various other EU member states (e.g. Hungary, Czechia), Poland has finally adopted a new act intended to screen foreign direct investments in Polish companies. The new law (the “Amendment”) amends the Act on Control of Certain Investments of 2015 (more on this available here), but it will also materially extend control over mergers and acquisitions.

The Amendment was finally adopted on 19 June 2020 and signed into law on 23 June 2020, with the new provisions entering into force as of 23 July 2020 and expiring 24 months thereafter.

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COVID-19: Poland’s Parliament Nears Passage of Extraordinary Debtor Restructuring Relief

Dictionary Series : LegislationPoland’s Parliament (the Sejm, the lower House of Parliament) is close to passage of an extraordinary debtor restructuring relief law as part of its fourth COVID-19 crisis legislation.

The measure, referred to as Shield Law 4.0 (Tarcza 4.0) would:

  • Create a “simplified restructuring proceeding” that would permit any debtor to commence this proceeding if faced with the risk of insolvency, understood as a 3-month delay in meeting payment obligations, even if this has nothing to do with the effect of the pandemic;
  • Create an automatic 4-month moratorium (in U.S. parlance, an “automatic stay”) on enforcement actions and executions, simply upon the debtor’s announcement, without any judicial action – the current restructuring law has no such automatic provision;
  • Permit restructuring of all secured debt, so long as the new payment terms provided that such creditors would receive 100% of their obligations at some (later) future date, with a potential cram down if they object to the revised payment terms;
  • Limit the role of the court to hearing motions to lift the automatic moratorium for cause, to approve the arrangement plan following creditors’ voting, or to dismiss the proceeding if 4 months have elapsed without a motion to approve the arrangement;
  • Have the proceeding run by a licensed restructuring advisor (of which there are approximately 1400 in Poland) who has been contracted by the debtor. This advisor formally acts as an arrangement supervisor, who works with the debtor to prepare a list of creditors, collects and counts votes in favor of a plan, and determines whether it has been accepted;
  • Limit the debtor to managing its ordinary business affairs; any decisions out of the ordinary could only be taken with the supervisor’s consent. The role of any creditors’ committee is effectively eliminated;
  • Set a deadline for commencing simplified restructuring proceedings of 30th June 2021.

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Poland: Signing Documents amid the Pandemic

The COVID-19 pandemic and the subsequent restrictions of face-to-face contacts have caused quite a stir among entrepreneurs, for instance when signing agreements and official documents. This has prompted many of them to seek all sorts of digital solutions in lieu of physical presence. Continue Reading

Covid-19 Prevention at the Workplace: Is Temperature Measuring Permissible?

Ensuring occupational safety and protecting employees’ health have been of the utmost importance for many employers over the past few weeks.  With the rapid spread of Covid-19, employers were forced to adopt strict preventive measures to ensure a safer working environment within their workplaces. While the most obvious solution was the adoption of home office schemes, not all jobs can be performed remotely. Continue Reading

Czech FDI Screening Bill – Get Ready For New Regulatory Challenges

As we recently observed in many states across the EU, national lawmakers have been coming up with bills that put in place mandatory non-EU FDI (foreign direct investment) approval requirements. The purpose of this legislation is to give state authorities competence to assess risks to national interests arising from such FDI and, if necessary, take protective measures. As of October 2020, national regimes will be further supplemented by a new EU-wide FDI framework represented by the FDI Screening Regulation (EU 2019/452). The FDI Screening Regulation lays down rules for cooperation and sharing of information between EU member states and the Commission and confers new powers to the Commission to issue non-binding advisory opinions. To keep up the pace with Germany, France, Italy and others, on 21 April 2020 the Czech Government submitted to the Chamber of Deputies its bill for the new FDI Screening Act. Continue Reading

Poland: Guidelines for Use of Retail and Hotel Facilities Upon Expected Lifting of Certain Trade Restrictions on 4 May 2020

The Polish government announced that on 4 May 2020, shopping centres, hotels, and DIY and furniture stores will be opened to the public subject to certain conditions and restrictions. Below, we highlight the guidelines published by the Polish Ministry of Regional Development for retail and hotel facilities. Continue Reading

COVID-19: Poland Launches an Official Tracking App

Poland’s Ministry of Digital Affairs and the Chief Sanitary Inspectorate have launched ProteGO, one of EU’s first official COVID-19 tracking applications. The Minister of Digital Affairs, Marek Zagórski, has been quoted as saying that his ultimate objective is for every smartphone user in Poland to use the app. Continue Reading

Polish Competition Authority Shows Areas of Attention During COVID-19 Epidemic

Silhouettes on cube boxesOn April 15, 2020, the Chair of the Polish Competition and Consumers Protection Authority (UOKiK), Mr. Tomasz Chróstny, delivered a speech defining UOKiK’s main focus areas amid the coronavirus disease 2019 (COVID-19) epidemic. In a 90-minute address, Mr. Chróstny defined the areas of particular attention for UOKiK in the wake of the COVID-19 crisis. Continue Reading