Employee stock ownership plans
Employee stock ownership plans (ESOPs) allow a select group of employees (usually management) to take an equity stake in the employer by purchasing shares at a nominal value or a value determined in the programme. These plans are implemented over a period of several years, and a condition for offering shares is the company’s achievement of certain financial targets specified in the plan.
![Employee stock ownership plans](/upload/thumb/wordpress/2017/03/231_new_auto_800x800.png)
Amendment to the Trading in Financial Instruments Act: What has changed for the corporate agent of an investment company?
New obligations to provide information to the financial regulator, mandatory internal control systems, and new administrative fines against agents and members of their authorities—the “vegetable patch” introduced quite a few changes.
![Amendment to the Trading in Financial Instruments Act: What has changed for the corporate agent of an investment company?](/upload/thumb/wordpress/2017/03/55_new_auto_800x800.png)
Green light for women on the boards of listed companies
In recent years, ESG has been mainly about “E”—environmental aspects, which were most often subject to regulation. Now there is increasing emphasis on social (S) and corporate governance (G). A noteworthy measure in governance is the EU’s Gender Balance Directive, which came into force at the end of 2022. The directive is intended to ensure more balanced representation of women and men among directors of listed companies.
![Green light for women on the boards of listed companies](/upload/thumb/wordpress/2017/03/165_new_auto_800x800.png)
The latest changes to the Central Register of Beneficial Owners
The Central Register of Beneficial Owners is a public register maintained by the Polish Minister of Finance, established pursuant to the EU’s 4th Anti–Money Laundering Directive (2015/849). The register has been in operation since autumn 2019, but in connection with harmonisation of provisions on disclosure of information on beneficial owners under EU legislation it is undergoing changes and improvements. Further modifications were made on 9 March 2023.
![The latest changes to the Central Register of Beneficial Owners](/upload/thumb/wordpress/2017/03/257_new_auto_800x800.png)
Election of the supervisory board by groups: An important right of minority shareholders
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.
![Election of the supervisory board by groups: An important right of minority shareholders](/upload/thumb/wordpress/2017/03/365_new_auto_800x800.png)
Crowdfunding: A way for companies to raise capital
After July 2022 amendments to the law, companies can now benefit from crowdfunding. As usual, the devil is in the details.
![Crowdfunding: A way for companies to raise capital](/upload/thumb/wordpress/2017/03/365_new_auto_800x800.png)
Private subscription of shares in a non-public company
A private subscription is a convenient method to raise share capital. How to carry it out in practice?
![Private subscription of shares in a non-public company](/upload/thumb/wordpress/2017/03/341_new_auto_800x800.png)
What is happening with the Foreign Exchange Law?
The Foreign Exchange Law has remained unchanged for many years. However, foreign exchange permits, though rarely required anymore, as well as reporting obligations, should still be kept in mind. To a large extent, foreign exchange transactions are freely allowed, but this does not mean that they are completely liberalised and not monitored by the National Bank of Poland.
![What is happening with the Foreign Exchange Law?](/upload/thumb/wordpress/2017/03/38_new_auto_800x800.png)
Will newly listed companies on the Warsaw Stock Exchange benefit from new tax regulations?
The Polish Deal introduces several solutions for Polish capital market participants, including corporate income tax changes for companies preparing to debut on the stock exchange. This amendment came into force on 1 January 2022.
![Will newly listed companies on the Warsaw Stock Exchange benefit from new tax regulations?](/upload/thumb/wordpress/2017/03/371_new_auto_800x800.png)
Will a tax exemption attract investors to the Warsaw Stock Exchange?
One of this year’s tax amendments that may affect Polish capital market participants is the income tax exemption for taxpayers investing in IPOs of companies entering the Warsaw Stock Exchange. Under certain conditions, they will be exempt from capital gains tax.
![Will a tax exemption attract investors to the Warsaw Stock Exchange?](/upload/thumb/wordpress/2017/03/390_new_auto_800x800.png)
Quest: Listing on the Warsaw Stock Exchange
The game development market in Poland and worldwide is steadily growing, and ambitious companies from the game sector are looking for ways to increase brand recognition and raise funds for new productions. This leads them to consider listing their shares on the stock exchange. So the question is, who can go public, what is to be gained from doing so, and how to go about it?
![Quest: Listing on the Warsaw Stock Exchange](/upload/thumb/wordpress/2017/03/99_new_auto_800x800.png)
Amendments to the Investment Funds Act
Work on the amendment of the Investment Funds Act is coming to an end. The changes include extending the range of fees in connection with distribution of participation units in Poland and introducing uniform rules for advertising information provided by funds and detailed rules for protection of investors in the event of cessation of marketing of participation units in foreign funds in Poland.
![Amendments to the Investment Funds Act](/upload/thumb/wordpress/2017/03/264_new_auto_800x800.png)