Standing surety: A director’s wife is better off than the director himself

The Regional Court in Wrocław has held that the fact that a company has guaranteed the debts of a director’s spouse without permission from the general meeting does not render such guarantee invalid.

This verdict has serious implications for many companies, in that they will now find their ability to defend against disadvantageous contracts executed long years ago with significant others of former managers impeded.

The present verdict turns on interpretation of art. 15 par. 1 of the Commercial Companies and Partnerships Code. The Court took the view (…)

Full text is available (in Polish) in Dziennik Gazeta Prawna (5.08.2020). If you are interested in an English-language version or in discussing the issues raised herein with one of our lawyers, please contact: kontakt@gessel.pl