The Conflict between the Frequency of the Polish Firms' Liquidity Problems and the Polish Bankruptcy Law Interpretation
The Conflict between the Frequency of the Polish Firms' Liquidity Problems and the Polish Bankruptcy Law Interpretation

Author(s): Joanna Wyrobek
Subject(s): Business Economy / Management, Law on Economics
Published by: Masarykova univerzita nakladatelství
Keywords: insolvency; liquidity; corporate finance; Polish Bankruptcy Law;
Summary/Abstract: The purpose of the paper was to present the conflict between business practice in Poland and the common court interpretation of the Polish Bankruptcy Act. Court interpretation states that if a company has got two unpaid in time invoices it should file for bankruptcy (however, under certain circumstances the judge can dismiss the case). Most practitioners do not follow this interpretation and wait much longer before they file for bankruptcy. Consequently, if a company finally goes bankrupt the managers are charged with negligence for waiting too long with starting bankruptcy proceedings.

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