| In Principle

A forensic audit at the start of the restructuring process should enable the company to uncover irregularities and take the right remedial measures.

Internal investigations conducted by enterprises in-house when irregularities are suspected offer many advantages to businesses compared to initiatives undertaken by public law enforcement authorities.

The Commercial Companies Code provides an extensive set of rules governing internal controls in Polish companies, from the general rules for conducting and controlling the company’s affairs by the management board to oversight of the management board’s actions.

Can evidence from an internal investigation be used in court?

Poland’s data protection regulations do not directly address internal investigations, but that does not mean they do not apply. In fact they can play a major role in drawing the line between lawful and unlawful investigative measures.

Internal investigations are becoming increasingly common, but individuals who face consequences as a result may attempt to undermine the findings or challenge the procedures followed in the investigation — including through seeking the protection of the courts.

Poland’s consumer protection authority has drawn up guidelines for amending the Act on Protection of Rights of Buyers of Residential Units and Single-Family Houses of 16 September 2011, popularly known as the Developers Act. Real estate developers are not pleased.

Contracts are signed expecting the worst. The provisions should be precisely formulated, particularly when a failure to be explicit can lead to application of rigid statutory provisions instead. When a dispute arises, the court’s interpretation of the parties’ intent may differ from the literal wording of the contract.

The contracting authority is not required to comply with contractors’ requests raised during negotiating sessions. It should allow contractors’ wishes in its own objective interest by including them in the terms of reference and the proposed contract.

Proper exercise of the function of contract engineer is crucial for the success of any construction project. The scope of the engineer’s obligations and the impartial attitude required of the engineer toward issues arising on the construction site are also reflected in the rights of the parties to the contract.

Poland’s Constitutional Tribunal has held that bank enforcement titles are contrary to the Polish Constitution because they violate the constitutional principle of equality. Pursuant to this judgment, the relevant provisions of the Banking Law—Art. 96(1) and Art. 97(1)—will cease to be in force on 1 August 2016. The ruling is fundamentally important for the entire banking sector and for bank customers.

One of the arguments for submitting disputes to arbitration is the confidentiality of the award, which is important for businesses. But as the case law demonstrates, the state courts do not always get the message about the confidential essence of arbitration.