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Liability for debts of the transformed entrepreneur

In resolution of 26th February 2015 (ref. act III CZP 106/14) the Supreme Court expressed an opinion concerning the acquisition of rights and obligations of the enforcement title in case of a single entrepreneur transformation into a joint-stock company.

According to the above resolution the Supreme Court stated that the art. 788 § 1 of the Code of Civil Procedure shall apply in the case of transition of rights or the obligations as a result of transformation of an entrepreneur into a capital company.

Therefore the Supreme Court affirmed the new capital company’s liability for the debts resulting from the conversion undertaken pursuant to art. 551 § 5 of the Code of Commercial Companies.

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