Family foundation in Poland. Legislation, economic impact and historical context
Family foundation in Poland. Legislation, economic impact and historical context

Summary/Abstract: The Polish Parliament has passed the Family Foundation Act to enter into force in 2023. The need forsuch a regulation was reported by the environment of family businesses and organizations workingon behalf of family businesses in Poland. The purpose of the article is to analyze and present the his-torical, legal, and economic background of the newly introduced legal instrument in Poland – familyfoundations. In addition, we forecast the dynamics of the creation of such entities. First, we discussthe historical context of the establishment of foundations, in particular enterprising families whodecided to establish and run their foundations on the basis of a different Act on Foundations. Next,we discuss the basic assumptions of the newly introduced Family Foundation Act, focusing mainlyon family governance. Finally, we outline the economic context of family foundations along withsome estimates. We find that this instrument was needed by business families who have no potentialsuccessors. The act contains many restrictions limiting the risk of running it. We forecast that thetotal number of family foundations established in Poland will amount to approximately 2,500, withan average growth rate of 250 foundations per year.

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