| In Principle

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.

The issue of trade secrets in Polish public procurement continues to generate doubts and objections. Recent actions by contracting authorities and rulings by the National Appeal Chamber show that less and less information can be classified as trade secrets. The chamber closely examines whether contractors have met all the prerequisites for treatment of classified information as a protected trade secret.

A fraudulent transfer claim against a third party protects participants in commerce and helps combat reprehensible actions by debtors aimed at avoiding payment of their debts. Under a fraudulent transfer claim against a third party, a creditor affected by the debtor’s fraudulent behaviour may enforce a claim against assets that the debtor transferred to a third party.

The latest episode explains the issues arising from the EU regulation and the conditions that foreign subsidies must meet for investors within the EU, including Poland.

The automotive industry is one of the pillars of the European economy, with a long tradition and a significant contribution to job creation and industrial activity. But the sector is facing difficulties, impacting even leading manufacturers. As the automotive industry is an important part of the energy transition, a question increasingly being asked is whether the industry can count on public financial support in the transition, and if so, what the funds are earmarked for.

Convertible loans are still a relatively rare debt financing instrument in Polish practice, but have recently gained popularity among startups and in venture capital. In essence, a convertible loan involves granting a loan that may be repaid by converting the debt into equity in the borrower. But depending on the expectations, circumstances and identified risks, the loan provisions can differ widely, with flexibility to modify the positions of the parties. This means it is worth paying attention to a number of financial and legal parameters, including obvious ones that can affect the feasibility of the undertaking.

EU regulations banning certain AI practices go into effect on 2 February 2025. Some institutions may assume that the bans only apply to extreme practices, which they would never be involved in. But the ban on using AI systems to assess the risk of that someone has committed a crime, or will commit a crime, shows that this is not the correct approach. A more in-depth analysis reveals that some market practices now considered standard, especially in financial services, may prove questionable once the bans enter into force. This is particularly true for monitoring of money-laundering risk and more broadly the risk of fraud.

The act introducing the deposit-refund scheme in Poland came into force on 13 October 2023. Companies were given a little more than a year to prepare for their new obligations, as the scheme is set to go live on 1 January 2025. But for several months the new government has been announcing changes to the act. The final wording the provisions when the scheme is launched remains an open question.

In the face of the elements and their destructive impact, the priority is quick reconstruction and renovation of structures. Thus an act was introduced into the Polish legal system in 2001 allowing such work to be carried out in a simplified manner. It is likely that persons affected by the September 2024 floods in southwestern Poland will soon be able to take advantage of these provisions.

Court of Justice clarifies the notion of “legal advisory services” under EU sanctions law and throws into doubt the Commission’s interpretation.