Polish Corporate Law Is About To Change – Holdings Law is Coming Into Force

The amendments to Polish corporate law are coming into force on 13 October 2022.

Unlike certain foreign legal frameworks, Polish law had, so far, only fragmentary provisions regulating relations between companies within the same group. The new law addresses this area and brings about fresh opportunities, obligations and challenges related to the operations of groups of companies in Poland. It offers closer control over subsidiaries by a parent, for a price of extended liability of a parent company and its officers.

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Implementation of the Digital Content and Services Directive and the Sales of Goods Directive in Poland

Poland faces the implementation of two EU pro-consumer directives essential for the e-commerce sector:

Directive (EU) 2019/770 of the European Parliament and of the Council of May 20, 2019, on certain aspects concerning contracts for the supply of digital content and digital services (the Digital Content and Services Directive or the DCSD);

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Cross-border reorganizations in the EU: how will the new rules affect the process?

Brazil in Business

Cross-border mergers have become an integral part of corporate restructurings within the EU internal market. Groups have been taking advantage of the harmonized rules to move or consolidate operations, ownership of assets and liabilities across the member states – for instance, many corporations used cross-border mergers to reorganise their structures as a result of Brexit.  However, the level of harmonization of cross-border reorganizations was limited, covering only mergers of limited liability companies, while other forms were absent. New legislation, discussed in more detail in this article, expands the rules for cross-border reorganizations by introducing comprehensive procedures also for cross-border conversions and divisions and revising rules on cross-border mergers of LLCs. It aims at making the process simpler, faster and cheaper, while, at the same time, ensuring increased protection of shareholders, employees and creditors and allowing national authorities to block cross-border reorganizations set up for fraudulent or abusive purposes, such as circumvention of social security payments or tax obligations. Continue Reading

Upcoming Legal Changes for Electronic Communications Entrepreneurs in Poland

While the electronic communications services industry is still awaiting legislative developments regarding the Electronic Communications Law, which was to be the main act implementing Directive (EU) 2018/1972 of the European Parliament and of the Council of December 11, 2018, establishing the European Electronic Communications Code (EECC) in Poland, amendments are underway on the National Cyber Security System Act, which also contains regulations introducing important obligations on electronic communications entrepreneurs.

Although this article mainly focuses on amendments to the National Cyber Security System Act, we also present the current legislative status of the Electronic Communications Law.

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Rooftop Solar Electricity Generation on Commercial Buildings – An Overview of Regulatory Issues

Electricity prices are going through the roof and the continuing conflict in Ukraine does not bode well for imminent price decreases. Commercial property owners, aligning with the changing regulatory environment and listening to their tenants’ needs, are quicker to consider installing solar panels atop their commercial buildings. Certain regulatory issues should be considered before deciding to generate solar energy on real properties. The regulatory environment depends on many factors concerning such activity, in particular on the solar panels capacity, on the generated energy’s designation – whether for own or third-party (tenants’) needs – and, finally, on whether such activity would entail earning a profit on the delivered energy.

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Trial by Fire for Polish Export Credit Insurance

Poland Flag

In the wake of Russia recently setting new rules for foreign creditors’ debt repayment, dividing foreign creditors in terms of whether or not they are based in a country that’s sanctioned Russia (the “Decree”), creditors having exposure to Russian entities have started reviewing their repayment options. Some of them may feel fortunate holding export credit insurance covering their political and/or commercial risk of funding Russia. For those creditors, the time has come to test the value of their export credit insurance.

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New Polish Holding Law v. Holding Financing

On 9 February 2022, the lower house of the Polish parliament amended the Commercial Companies Code, introducing a parent company’s liability for any damage caused to a holding subsidiary. The amendment has also introduced a binding instruction as to the parent’s handling of the subsidiary’s affairs if the holding’s interest so dictates. The parent must follow certain formalities when issuing the binding instruction, as will the subsidiary when accepting it, and cooperation between both companies’ officers will be required.

Parent’s Binding Instruction

According to the amendment, the parent may issue a binding instruction to its holding subsidiary – justified by the holding’s interest. The binding instruction should indicate:

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Polish FDI Rules – One Year After

Gavel and Figure of Justice

In July 2020, Polish Parliament passed an amendment to the Act on Control of Certain Investments of 24 July 2015, which entered into force on 24 July 2020 (the Amendment). That Amendment has extended the scope of government’s control over the acquisition of stakes in Polish entities. Investors from outside of the EEA, EU, or OECDwould need to obtain clearance for the acquisition of a stake in Polish companies (or partnerships) carrying out business in sectors that the government has identified as being of strategic importance.

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