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.
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.
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
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 Whistleblower Protection Act of 14 June 2024 is a key element of the Polish legal system, aimed at protecting people reporting irregularities in the workplace (Article 4 of the Act – definition of a whistleblower). The provisions of this legal act focus primarily on ensuring effective internal reporting mechanisms, which aims to build a culture of compliance with the law in organizations. The Act sets out obligations for employers and gives whistleblowers specific tools to defend their rights. This analysis focuses on key aspects of the Act, such as reporting procedures, whistleblower protection and the impact of the Act on employee-employer relations.
