Statutory non-competition of a board member of an LLC

Entering into non-competition agreements is extremely popular nowadays. However, not everyone knows that a board member of an LLC in Poland does not have to sign such an agreement at all in order to be bound by a non-compete with the company. This is because the prohibition of competition for members of the management board of an LLC in Poland derives directly from Article 211 of the Commercial Companies Code (CCC) and is a so-called statutory prohibition.

Simplified share capital increase – is it always possible?

Simplified share capital increase – what is it about?

It has almost become a standard nowadays to introduce into the articles of association of a limited liability company a provision on the possibility of increasing the company’s share capital to the value specified in the agreement within a certain period of time, without the need to amend the agreement (so-called simplified share capital increase). This provision is practical insofar as, in the event of a need to quickly recapitalize the company, it is possible for shareholders to pass a resolution to increase the share capital without the need to involve a notary public in the entire process. However, this popular element of the articles of association may not always be used in practice, and sometimes shareholders, despite unanimous agreement on the need for a share capital increase, must resort to the traditional solution, i.e. a capital increase by amending the articles of association.

Coronavirus and executing trade contracts

The global coronavirus outbreak has put tradesmen, as well as entrepreneurs, in a very difficult situation. The execution of previously signed contracts is currently difficult, sometimes even impossible. What steps can and should be taken to protect the one’s business?

“Consortium agreement – what is it and is it worth signing?”

The consortium agreement is nowhere explicitly regulated by law in Poland. However, in practice (especially in the construction industry) it is extremely popular. This is because it allows the implementation of large contracts, which without the help of other entities (consortium members) we simply would not be able to perform (for financial, personnel, technological, time or other reasons).

When does the reason for termination by mutual agreement become material?

In the vast majority of cases, the reason for the decision to terminate the employment relationship will not be relevant to the conclusion of the employee-employer agreement.

Special pension versus pre-retirement protection for employees

Most employees of pre-retirement age are aware of the protection afforded them by the Labor Code on this account. However, is the same protection afforded to a worker of pre-retirement age who is also drawing a special pension?