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Home NEWS the polish sejm is currently working on an important amendment to the polish code of commercial companies

The Polish Sejm is currently working on an important amendment to the Polish Code of Commercial Companies

The main premise of the amendment is to add a new chapter “Group of companies” to the Code of Commercial Companies, which will regulate the relationship between the parent company and its subsidiaries.

Capital companies will be able to use new regulations according to their choice, the use of new regulations of the law on corporate groups will not be mandatory, as it aims at facilitating the management of a group of companies.

The management instrument of a parent company will be a “binding instruction” given by the mother company to the daughter company that will be linked with a potential liability of the parent company for the damages arising from executing the instruction.

What is more, there will be introduced a new procedure of leaving the company for minority partners, so called sell-out, and the role of the supervisory board of the parent company will be significantly extended in the control over subsidiaries.

Moreover, the draft also provides for provisions to increase the effectiveness of supervision by supervisory boards of capital companies, but only in terms of the interests of the group of companies, as well as the parent company's right to information about subsidiaries.

The new regulations would enter into force six months after their publication in the Journal of Laws.

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