| In Principle

On 13 March 2023, the President of Poland signed an amendment to the “10H Act,” setting the minimum distance of a wind power plant from residential buildings at 700 metres (over calls by power generators, industry organisations and many local governments that it should be 500 m). This means that the years-long struggle to liberalise the infamous “10H rule” has been half-successful.

Poland’s Commercial Companies Code provides for a number of institutions strengthening the position of minority shareholders. One is that shareholders representing a fifth of the share capital may demand that the company’s supervisory board be elected by voting in separate groups (Art. 385). This is a departure from the statutory method of appointing the supervisory board by a resolution of the general meeting adopted by a simple majority of votes. One or more shareholders representing 20% of the share capital may demand that the supervisory board be elected in groups, even if the company’s statute provides for a different way of appointing the supervisory board, e.g. through personal entitlements.

The issue of the compatibility of a planned undertaking with the local zoning plan is complex, and some aspects of it have long raised questions. The problem is of great practical importance, and the approach of land-use authorities and the courts in a particular case often determines whether a development or certain activities can be carried out in a given area. This is particularly evident in the case of waste management projects.

Parliamentary work on Poland’s draft Act on Clinical Trials of Medicinal Products for Human Use is coming to an end. According to the bill, entities involved in clinical trials and introduction of new drugs will be able to receive scientific advice from the president of the Office for Registration of Medicinal Products, Medical Devices and Biocidal Products. This will enable better preparation of tests and trials and consequently faster registration of safe and effective drugs.

An increase in the share capital of a limited-liability company without amending the articles of association is often used as a simpler, faster and, in theory, cheaper method of increasing the capital. But in practice, due to the ambiguous wording of the regulations, doubts may arise about this method of capital increase and the form of the documents required for its effective implementation. What should be kept in mind for a simplified share capital increase to be carried out correctly?

The statute of limitations for claims arising from a contract for a specific work is regulated differently from the general rules. Pursuant to Civil Code Art. 646, these claims become time-barred two years after the work is delivered, or if the work has not been delivered, two years after it was supposed to be delivered under the contract. This is a short timeframe, and requires great care to avoid forfeiting claims—especially as the way it is counted can raise practical questions, and in some cases a three-year term is used.

What is a registered pledge on shares in a limited-liability company, and how is this security enforced? These questions are answered in the latest episode of News from Poland—Business & Law by Mateusz Tusznio, an advocate and restructuring adviser specialising in banking and finance law and restructuring of corporate debt.

In 2022, the Polish parliament introduced a number of significant changes to the Construction Law. The most important of these are related to further digitalisation of administrative processes in construction. The amendment introduced the ability to maintain a daily construction log and site book in electronic form, as well as an electronic central register of licensed builders. The administrative procedures have also been simplified for construction of single-family houses with an area of up to 70 m2, and new obligations for the energy performance of buildings have been implemented.

The government’s draft reform of perpetual usufruct in Poland focuses on changing the rules and method for determining the price for sale of a property to its perpetual usufructuary. Additionally, perpetual usufructuaries are granted a claim to acquire the property they hold. This is part of the process of phasing out perpetual usufruct entirely.

More and more residential tenants recognise the advantages of institutional leasing over renting from private individuals, due to the security and stability of the lease relationship, the attractive standard of the units offered, and the package of property management services. The question is what type of agreement to conclude in such a lease relationship.

In recent years, there has been a notable revival in the residential lease market in Poland, and thus an increase in the interest in lease property investments also among foreign investors in the private rented sector (PRS). In response, the Polish parliament has introduced a number of new provisions on lease agreements. One such change was the introduction in 2017 of the institutional lease agreement, which is designed specifically for use by businesses letting residential premises in the private rented sector.

On 7 January 2023, provisions came into force in Poland amending the rules for determining the value of real estate in the case of adoption of a local zoning plan after a “planning gap.” Will they affect property owners, and to what extent?