In order to diversify their business activities, many entrepreneurs decide to establish multiple companies. However, this approach does not always bring the expected results. What actions can be taken to improve the situation? A solution that can help strengthen market position or reduce costs is a merger of companies. This can be carried out in two ways: by transferring the assets of one company… Read more

Restructuring law provisions and regulations introduced to mitigate the effects of the Covid-19 pandemic provide solutions that allow entrepreneurs at risk of insolvency to avoid declaring bankruptcy. How can these options be used? Restructuring makes it possible to suspend ongoing enforcement proceedings and reach an arrangement with creditors. Through debt reduction, payment deferral, or debt-to-equity conversion, such an arrangement can help the entrepreneur recover from… Read more

It is possible to increase the share capital of a joint-stock company through what is known as authorized capital. This involves granting the company’s management board the authority to adopt one or more resolutions to increase the capital under specified terms. What are the benefits of this solution? Using authorized capital allows for a simplified, faster, and more cost-effective capital increase compared to the standard procedure. It also enables the issuance of… Read more

An individual at risk of bankruptcy often wishes to sell the business as a whole. This approach usually allows for a higher sale price compared to selling off individual assets during bankruptcy proceedings. Additionally, it gives the company a chance to continue its operations. How can such a transaction be carried out? This is possible through a procedure known as pre-pack (prepared liquidation). It involves the sale of the bankrupt business, an organized part of it, or key assets, based on… Read more

The provisions on capital companies allow for various rights and privileges to be granted to shares or shareholders. But can granting such privileges be made conditional upon providing additional contributions to the company, such as financial support? It’s worth noting that there is no closed list of permissible types of privileges, which means they can be tailored to specific needs. The most common include voting rights privileges… Read more

One of the most common reasons for dissolving a limited liability company (sp. z o.o.) is a resolution by the shareholders to liquidate it. However, sometimes during the liquidation process, circumstances arise that make the decision seem misguided. Can the shareholders reverse it? This issue is clarified by Agata Okorowska, legal counsel at Law-Taxes.pl Legal Office. A resolution to dissolve a company is adopted by a two-thirds majority vote… Read more