| In Principle

In previous articles, we have outlined the advantages of establishing a family foundation, the scope of business activities permitted for foundations, and tax issues. Now we turn to the rights and obligations of persons involved in the operation of a family foundation. The foundation operates through its bodies (management board, supervisory board, and assembly of beneficiaries), but it cannot be established and function without the founder and beneficiaries. The Family Foundations Act regulates the tasks and powers of all of these entities, giving the founder relatively wide latitude to set the rules for the foundation’s bodies in the statute. This allows these policies to be tailored flexibly to suit the foundation’s operations and purposes.

In this episode of News from Poland—Business & Law, Stefan Feliniak describes how the ESG trend is affecting corporate lending.

The Family Foundations Act, entering into force on 22 May 2023, introduces the family foundation into Polish law as a new legal entity designed for collecting property and managing assets in accordance with the founder’s will and paying benefits to beneficiaries. Therefore, the objectives of a family foundation are different from those of existing foundations, which are non-governmental organisations operating for public benefit and not for profit.

In just a few days, it will be possible to carry out intergenerational succession in Polish companies through the vehicle of a family foundation. This new legal entity is designed to meet the needs of business owners, who until now have been condemned to relatively limited choices under general provisions, or could choose foreign jurisdictions to set up a family foundation (e.g. in Austria, Liechtenstein, Malta, or the Netherlands).

Along with the provisions allowing for establishment of a family foundation, entirely new tax provisions are being introduced, with attractive rules for taxation of asset transfers and foundation activities, but also a slightly too varied patchwork of tax rates.

Like any other legal form, a family foundation may also involve the risk that the management of assets will be delegated to incompetent persons, the foundation will act in a manner contrary to its stated purpose or the interests of its beneficiaries, or it will conduct business activity in areas not permitted for a family foundation. However, in the Family Foundations Act, the Polish parliament has provided certain tools to prevent such situations.

On 13 May 2023, a new regulation with detailed requirements for advertising of medical devices enters into force. Advertisers of such products, including influencers, must include warnings in advertising messages, similar to those familiar from drug advertisements.

Construction of a waste incineration plant is a complex undertaking. The investor must meet a number of regulatory requirements and obtain the relevant administrative decisions, including the building permit and the environmental decision preceding it. These can be obtained only if the project complies with the local zoning plan. In this context, it is often questioned whether an incineration plant can be built on land zoned for manufacturing.

In this episode of "News from Poland - Business & Law" Radosław Wiśniewski will tell you about the government’s plans to replace the right of perpetual usufruct of real estate with the right of ownership.

Rail infrastructure and the land on which it is located are exempt from property tax in Poland. Is that unauthorised state aid? The answer from the Court of Justice could have far-reaching consequences.

The EU legislative process related to adoption of key legal acts under the “Fit for 55” package is coming to an end. One of its elements is gradual integration of the maritime transport sector into the EU greenhouse gas emissions trading system (EU ETS).

According to a report published in 2021 by the European Environment Agency and the European Maritime Safety Agency, 13.5% of total transport greenhouse gas emissions in the European Union originate from ships. Transforming maritime transport into a sustainable and environment-friendly sector requires actions on many levels. One of them is to enable ships moored in port to use shore-side electricity.