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Alternative Investment Companies – practical comments

Publication date: December 02, 2024

Alternative investment companies are a specific form of investment activity introduced into the Polish legal system within the framework of the provisions on investment funds, and specifically in the context of managing alternative investment funds. These regulations are contained in the Act of 27 May 2004 on investment funds and the Act of 22 July 2005 on the management of alternative investment funds, Journal of Laws 2024.1034. AIICs are therefore a specific form of asset management that creates the possibility of investing in alternative assets, such as real estate, private equity, raw materials or debt, while maintaining high flexibility in terms of investment strategies.

Legal Basis for Alternative Investment Companies

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CORPORATE GOVERNANCE PRINCIPLES FOR SUPERVISED INSTITUTIONS – practical analysis of the document developed by the Polish Financial Supervision Authority

Publication date: November 29, 2024

The document “Principles of Corporate Governance for Supervised Institutions” developed by the Polish Financial Supervision Authority (KNF) is a key set of principles regulating the functioning of supervised institutions, such as banks, pension funds, insurers and other financial market entities. Adopted by the KNF resolution of 22 July 2014, it has been in force since 1 January 2015 and serves as a guide in ensuring transparency, stability and ethics of the operations of entities on the financial market.

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“Tag along” and “drag along” clauses in company agreements on the example of a limited liability company – Examples of clauses and practical comments

Publication date: November 14, 2024

Company agreement and freedom of contracts

The company agreement (Articles of Association, shareholder Agreement) is a very unusual type of agreement. It not only creates obligations between the parties, but also creates a completely new legal person – a company. Although the full creation of a company requires other activities, primarily an entry in the National Court Register, the company agreement defines the way it operates, its goals and the shares it consists of. It is for the company what the constitution is for the state.

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Registration of business activity with a virtual office in Poland – practical comments and views of administrative courts

Publication date: November 13, 2024

Virtual office and registration as an active VAT taxpayer

A virtual office is an innovative method of reducing the costs of running a business. It allows to establish a legal seat of business in a specific location without having to run a traditional office. This is a particularly good solution for individual businesses run by freelancers working remotely, who can provide their services from all over the world and do not need a traditional office, but also for foreign investors who are unable to manage an office in Poland on an ongoing basis and do not want to rent premises and hire staff for this purpose. Virtual offices are usually managed by experienced office administration specialists who are able to handle incoming correspondence, store documentation in a legal manner and accept inspections.

A virtual office has been a legal way of establishing a business headquarters for years. However, it is necessary to take into account the legal requirements that must be met in order for a virtual office to legally fulfill its function.

Legal requirements for establishing a virtual office

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ZOMBIE COMPANIES – LEGAL COMMENTS

Publication date: October 28, 2024

Over the past decade, a new term has emerged in the global economy that has stirred both interest and concern: “zombie companies”. These companies, while formally operating, live in the shadow of debt, and are only able to “survive” thanks to low interest rates and the support of financial institutions. Unable to generate sufficient profits to repay capital, they constitute an unusual economic phenomenon that affects both market dynamics and financial stability. “Zombie companies” not only hinder the potential for economic growth, but also raise questions about the effectiveness of monetary policy and government interventions in times of crisis. This article will explore the causes of their emergence, their consequences for the global economy, and possible strategies for managing them. Analyzing various cases from different parts of the world, we will also look at whether there are effective methods for “saving” zombie companies and what challenges economic decision-makers face when making decisions about their future.

What are zombie companies?

Zombie companies are companies that do not have enough profits to continue operating and servicing debt, but are unable to repay their debt. Such companies, given that they survive only on overhead costs (e.g., salaries, rent, interest on debt), do not have surplus capital that they can invest to stimulate growth. “Zombie companies ” are particularly dependent on banks for financing, which is essentially their source of income. Zombie companies are also known as “living dead” or “zombie stocks.”

The key features of “zombie companies ” include:

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