Another overhaul to the Civil Procedure Code: Key provisions
The Polish parliament has voted to amend the Civil Procedure Code, introducing numerous changes primarily intended to speed up proceedings. On this occasion, the parliament decided to reinstate some solutions it had abandoned in recent years. Below we discuss the most important changes.
Rules for siting of onshore wind farms liberalised
On 13 March 2023, the President of Poland signed an amendment to the “10H Act,” setting the minimum distance of a wind power plant from residential buildings at 700 metres (over calls by power generators, industry organisations and many local governments that it should be 500 m). This means that the years-long struggle to liberalise the infamous “10H rule” has been half-successful.
The housing cooperative: A new approach for implementing residential projects
On the residential construction market in Poland, currently dominated by real estate developers, housing cooperatives can begin building starting 1 March 2023, when the new Housing Cooperatives Act enters into force, introducing a framework for their activities and providing incentives for such grassroots construction initiatives.
EU tenders: Foreign subsidies must not distort competition
The European Union has addressed the issue of the impact of third countries, from outside the EU, on the operation of the single market. Next year, the Commission will begin investigating sources of money giving foreign undertakings an advantage, including in public procurement procedures. Subsidised contractors will not get public contracts in the EU if awarding them a contract could disrupt the EU market.
New law on corporate groups enters into force in October 2022
An act amending the Commercial Companies Code was published in the Journal of Laws on 12 April 2022. It establishes the rules for operation of capital groups in Poland and modifies certain rules for operation of corporate authorities. The act will enter into force six months after publication.
The business judgment rule
The management board conducts the affairs of the company, represents the company externally, and under certain circumstances can be liable to the company and its creditors. Management board members should act with due care, which corresponds to the standard of care that would be observed by a conscientious merchant in dealings of a given sort. Failure to observe due care can lead to liability of members of the corporate authorities—and conversely, compliance with due care can shield them from such liability. An amendment to the Commercial Companies Code will make certain changes to these rules.
Binding instructions for conduct of the company’s affairs under the new Holding Law
Until now, corporate officers have had to act solely in the best interests of their own company, which has made the operation of corporate groups difficult. As of October 2022, it will be possible to issue binding instructions to subsidiaries affiliated with formalised corporate groups. What must such an instruction contain, can the execution of such an instruction be refused, and what if the company suffers a loss as a result of execution of binding instructions?
Squeezeout and buyout under the new Holding Law
On 12 April 2022, the new Holding Law was published in the Polish Journal of Laws, introducing into the Commercial Companies Code new regulations on the activity of corporate groups, including the possibility to squeeze out minority shareholder’s stakes in subsidiaries.
The Holding Law in practice: Do companies need to amend their articles of association?
The recent amendment to the Commercial Companies Code introduces a number of important changes for companies, especially companies operating within corporate groups. This raises the question of whether companies should adapt their corporate documents to reflect these changes.
New provisions on by-products
The amendment to the Waste Act which is to come into force at the beginning of 2022 implements the amended Packaging and Packaging Waste Directive into the Polish legal system and constitutes a step towards a circular economy. One of the more significant changes relates to by-products.
Minister of Infrastructure takes first step on new offshore wind permits in Poland
On 1 December 2021, the Minister of Infrastructure published a long-awaited regulation on evaluation of applications for licences to erect artificial islands (offshore location licences). Investors who obtain permits will be able to participate in future auctions for offshore wind farms.
The new Developers Act: What will change?
During the decade after the current Developers Act entered into force in Poland, it was repeatedly argued that its provisions were vague or diverged from the market reality, so that the act did not live up to the hopes placed in it. As a result, in the last few years, work was undertaken to introduce a new law to fill the existing gaps and, above all, provide greater protection for buyers of residential units and single-family houses.
