Newsletter No. 3 | 2025

Tax Neutrality of Simplified Mergers Between Subsidiaries – an End to Disputes?

The provision introduced a new type of merger in which no shares in the acquiring company are issued. The absence of the “merger issue” is justified by the fact that the merging companies have identical shareholders and identical proportions of capital participation.

Pay Transparency – Upcoming Amendments to the Polish Labour Code

The issue of pay transparency has long sparked debate among both employers and employees. Polish law has, so far, not required employers to disclose remuneration levels during the recruitment process, nor has it specified whether employers may ask candidates about their previous earnings.

Covering a Limited Liability Company’s Balance Sheet Loss Through Shareholders’ Additional Contributions and Loans

A negative financial result in a limited liability company (spółka z ograniczoną odpowiedzialnością, sp. z o.o.) is a clear warning signal. It requires both the management board and the shareholders to analyse the causes and make deliberate decisions aimed at stabilising the company’s financial situation. Although losses may be settled against future profits, in practice it is often necessary to strengthen liquidity more rapidly.

Enforceability of Foreign Court Judgments in Poland

The enforceability of foreign court judgments in Poland is a crucial aspect of cross-border disputes. It enables a creditor to submit a foreign judgment to a Polish enforcement authority in order to recover claims awarded abroad. The procedure, however, varies depending on whether the judgment originates from an EU Member State or a third country.