Company law on biznesprawnik.pl: Conversion of receivables in exchange for shares
The article “Conversion of receivables in exchange for shares” by legal trainee Michal Kłauzinski, a member of our Team at biznesprawnik.pl is an understanding and clear explanation of the issues related to conversion of receivables into shares.
An overview of the relevant provisions of the law appears in the article, particularly Article 158 of the Commercial Companies Code, which is the foundation for the process. In the article, you’ll find information on the choice of the type of contribution to the company by shareholders, as well as how the articles of incorporation can affect the possibility of in-kind contributions. Paying attention to the details, the article also analyzes mixed-type contributions, where a partner makes both cash and non-cash acts.
There is also no lack of reference to case law, and, for example, the article cites the judgments of the Supreme Administrative Court (NSA) and the Warsaw Administrative Court (WSA), which precisely define when a debt conversion constitutes a cash or non-cash contribution of share capital.
Therefore, if you want to expand your knowledge of corporate law and understand the differences between cash and non-cash contributions, be sure to take a look at the article! Read now: https://biznesprawnik.pl/2023/12/13/konwersja-wierzytelnosci-w-zamian-za-udzialy/.