Simple Joint Stock Company not so simple

Simple Joint Stock Company (Prosta Spółka Akcyjna – PSA) introduces many facilitations, adapting formal issues to the existing business reality, which may be attractive for entrepreneurs. However, its construction is not as simple as the name would suggest.  Rafał Pietruszewski, attorney, discusses issues related to PSA for Puls Biznesu.

– It is regulated by 133 articles of the Code of Commercial Companies and Partnerships, introducing, inter alia, new institutions and mechanisms (such as equity capital, solvency test), some of which, especially among those who are not lawyers, may raise doubts. It should be borne in mind that the complexity of the PSA regulations and the possibility of introducing flexible provisions to the articles of association, different from the standard provided for in the Code, mean that cooperation with lawyers seems to be necessary when establishing and running a PSA – to avoid mistakes in understanding and operating the PSA institution.

– The issue that raises some doubts is the so-called solvency test – a possibility for the management to pay money to PSA shareholders, provided that the company is able to repay mature financial liabilities within six months from the date of payment. The very idea of ​​the solvency test is very interesting, but the assessment whether the board meets the abovementioned condition may not be easy in practice. – says Pietruszewski.

Link to the article: https://www.pb.pl/prosta-spolka-akcyjna-wcale-nie-taka-prosta-954238