Company insolvency and personal liability
The insolvency of a Polish limited liability company or joint-stock company may expose management board members to personal liability. The risks can concern debts owed to creditors, tax arrears and other public liabilities, as well as damage resulting from a failure to take required action.
The scope depends on the type of company, the legal basis of the claim and the circumstances. For limited liability companies, Article 299 of the Polish Commercial Companies Code may be relevant. For tax arrears of limited liability and joint-stock companies, we assess, among other provisions, Article 116 of the Tax Ordinance. We identify the rules relevant to your situation.
When should you act?
We advise both at the first signs of financial difficulty and when the company is already unable to pay its debts. We examine documents, the sequence of events and financial information to assess when management obligations arose and what action should be considered.
- Risk assessment. Identifying possible grounds for liability, the relevant period in office and the significance of decisions taken.
- Bankruptcy and restructuring. Explaining the importance of appropriate and timely action, and assisting with applications and supporting documentation.
- Documenting decisions. Organising evidence of the company’s situation and management actions that may be relevant to a later dispute.
Disputes with creditors and authorities
If you receive a demand for payment, a claim or notice of proceedings concerning your liability, we analyse the grounds and possible defences. We represent current and former board members in disputes with creditors and proceedings before tax authorities, the Social Insurance Institution (ZUS) and courts.
We prepare responses, appeals, complaints and other submissions. We analyse evidence and circumstances that may exclude or limit liability and support settlement discussions.
How we start
We discuss the company’s situation, your period in office and the history of the case. Please prepare correspondence, financial documents and information on actions taken by the board. We then agree the scope of advice or representation.