| In Principle

On its website, the Polish Financial Supervisory Authority (KNF) has announced that it plans to repeal the current recommendations and guidance for financial institutions on managing IT and cybersecurity, covered by the EU’s DORA regulation.

The EU’s General Product Safety Regulation will start to apply in Poland on 13 December 2024. The GPSR will replace the product safety regulations now in force, and apply to many types of non-food consumer products. It sets general safety standards for all categories of consumer products for which more specific standards are not provided in other laws. Adapting to the changes will require relabelling of consumer products, among other efforts. But inspections and sanctions will have to wait for legislation by the Polish parliament.

Foreign direct investment contributes to the growth of the economies where foreign money is invested, but can also undesirably interfere with resources of strategic importance to the functioning of the host country. In difficult times, security issues come to the fore at the national and EU levels, and protectionist tendencies rise. In recent years, the best example is implementation of regulations on control of FDI in the laws of various European countries (as reflected in the latest update to the procedural guidelines issued by the Polish competition authority).

The July 2023 amendment to Poland’s civil procedure rules made a big change in the filing fee on a fraudulent-transfer claim against a third party. Now, if the amount in dispute at the first instance or on appeal exceeds PLN 20,000, the fee will be capped at PLN 1,000. There is one condition: the creditor must hold specific legal proof of its claim against the debtor. Previously, the fee on such a claim could run as high as PLN 200,000.

The growing problem of global deforestation and degradation of forests, leading to a loss of biodiversity, has not escaped the attention of EU lawmakers. In 2021, the European Commission proposed a regulation combatting these negative developments. The proposal was adopted and is in force. Now there are many indications that the new rules will not apply until 12 months later than originally planned. However, it is not certain that the European Parliament will have time to delay the application of the new provisions.

The Artificial Intelligence Act (Regulation (EU) 2024/1689) entered into force on 2 August 2024. In most respects the regulation will apply from 2 August 2026. The AI Act also includes grace periods enabling entities covered by the regulation to adapt to their new obligations.

On 26 September 2024, the Court of Justice issued a major ruling on consumer protection in the context of presentation of product prices and use of discounts in advertising campaigns. The judgment in C-330/23, Aldi Süd, will be crucial for businesses operating in the EU, including Poland.

On 25 October 2024, Poland’s Office of Competition and Consumer Protection (UOKiK) published updated guidelines on the criteria and procedure for notification of intended concentrations. This is the first change to the guidelines since they were published in 2015. The most important change is a more liberal interpretation of the effects doctrine (extraterritoriality), which is expected to reduce the number of foreign concentrations subject to notification in Poland.

The Polish Commercial Companies Code allows mergers of both companies and partnerships, except that a partnership (other than a joint-stock limited partnership) cannot be the acquiring entity or newly incorporated entity. For mergers of companies, the procedure begins with agreement of a merger plan. The necessary elements of the merger plan and annexes are listed in the regulations, but the wording is not clear. Mistakes in preparing the merger plan may cause the court to refuse to register the merger. In this article, we focus on doubts regarding the methods of valuing the assets of the acquired and acquiring companies during the merger of companies by acquisition.

The classic form of protection against the financial consequences of natural disasters is property insurance, primarily covering the risk of physical damage or destruction. But that is not all. Insurance for businesses can also protect against the loss of profits and against unanticipated costs of business interruption.

After nearly a year of promises, the government published a proposal to amend the Wind Power Plant Act on 25 September 2024. The amendment of March 2023 was deemed insufficient for accelerating the development of onshore wind power in Poland. Further liberalisation of the rules for siting of wind power plants aims to expedite Poland’s energy transition and stimulate the wind power sector, especially at the local level.

The first proposal of Polish regulations implementing the EU’s Women on Boards Directive, aimed at more balanced representation of women and men on the bodies of large listed companies, has now been published. This is to be achieved by setting requirements for the selection process of candidates for these positions and introducing a minimum level of participation of the underrepresented sex. The proposal comes as no surprise. Work on the directive took a decade, but it nevertheless elicited many comments in public consultations. The member states have to implement the directive by 28 December 2024.