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Draft Act on the Liability of Collective Entities

14.09.2018

Authors:

Paweł Lewandowski
Dr Hanna Gajewska-Kraczkowska
Dr Anna Partyka-Opiela

Practice:

Life Sciences
Dispute Resolution

A new draft of the Act on the Liability of Collective Entities (ALCE) was published on 5 September 2018. It imposes further obligations on collective entities and tightens up the rules for their liability under the new provisions.

What entities and actions does the Act concern?

The new Act will apply to all legal persons, commercial companies, capital companies, commercial companies with state participation, local authorities, and entities in organisation and liquidation.

A collective entity will be liable for all offences committed in connection with the activity it conducts due to the actions and omissions of its bodies or a member of its bodies, or failure by the same to observe the required precautions. A collective entity will also be liable for all offences committed in connection with the activity it conducts by: (i) persons authorised to represent it, and for decisions taken or supervision exercised on its behalf; (ii) persons authorised to act by a body or a member of a body of the collective entity, and (iii) its employees in connection with performance of an employment contract.

Additionally, if a collective entity, even indirectly, gains a financial benefit from an offence, it will also be liable for the actions of its subcontractors, employees, and persons authorised to act on its behalf and in its interests.

Full content of the legal alert is available in attached PDF.

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