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Succession in business | bojarski.net.pl

Succession in business

Ongoing generation changes taking place in many firms, especially in family businesses stimulate legal security of the effective succession planning. In case of succession of an one-man enterprise, its property belongs to the owner. However, after his death all the elements of the business are not parts of his personal property.

Preparation for the succession process includes both management transfer and succession after the owner’s death. It has to be arranged thoroughly to avoid possible threats. Moreover, articles of association and regulations applied by entrepreneurs do not ensure secure and smooth succession process.

We render advisory services and prepare whole succession process in case of the owner?s death. We also assist heirs with their cases. We have gained considerable experience in managing family business cases and in all issues related to succession process. Paweł Bojarski, PhD participated as an expert in 6th Polish meeting of family businesses? U-Rodziny 2013?. He was a speaker in the panel of lawyers.

Succession (both intestate and testamentary)

  • comprises: the company’s property and the deceased’s rights, including limited property rights: mortgage, usufruct, receivables, proprietary copyrights, debt obligations regarding securities, obligation arising from concluded contracts;
  • does not comprise: company, concession, permits, tax identification number, necessity for heirs to obtain the tax identification number, all the concessions, necessity to register a new company name to run a business activity in the same scope.

As a rule, the employment relationship between employers and their employer shall expire after his death. Heirs are obliged to pay out damages according to the provisions of the labour code. An exception is when the firm is being transferred to the owner’s successor and then the employment relationship remains valid.

Heirs are liable for the debts arising when running the business activity. This liability may be unlimited (inheritance accepted under the law), limited to the value of assets (inheritance accepted under benefit of inventory) or may not occur at all (rejection of inheritance), however it means an individual does not participate in division of inheritance.

Intestate succession results in:

  • a large number of testators and hence co- ownership which may lead to malfunctioning of the firm. Fast division of inheritance is strongly advisable;
  • a long-term process of acquiring inheritance which may lead to the expiry of the contract. Furthermore, license may expiry and the firm may suffer losses.

Succession of the firm to one heir can be obtained through:

  • a bequest in the testament;
  • selecting a specific person to be an heir, which leads to paying out the legitimate portion to the rest of entitled heirs;
  • disinheritance of the intestate heir by the testator (an individual is not entitled to the legitimate portion, inheritance exclusion) but it is possible only when this exclusion is due to the circumstances pointed out legally and justified in the testament.

According to the above, our Law Office offers the comprehensive assistance in the following scope:

  • legal analysis of possible benefits and threats in scope of succession;
  • legal audit;
  • drawing up a succession plan;
  • legal representation and managing succession cases before courts and enforcement authorities, such as proceedings in scope of inheritance division or in scope of liability for inheritance debts;
  • participating in signing notarial deeds;
  • advisory in scope of obtaining entries to relevant registers, licenses and permits;
  • professional expertise in making a testament;
  • tax advisory;
  • assessing contracts regarding inheritance.

You can also contact our mediator who manages mediations between heirs in case of any possible disputes.

 

 

 

 

 

 

 

 

 


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