The current government took office at the end of 2007 promising to make legal reform a top priority. And true to its word, the new government formed a new commission in the Sejm, referred to as the Friendly State Commission (“Commission”), to recommend amendments to current regulations in order to improve ’s business environment. Led by Sejm Deputy Janusz Palikot, the Commission has since proposed nearly 90 legislative amendments; however, less than 10 percent have actually been voted on by the Sejm. Nearly 80 out of the 90 proposed bills have never been voted on by the full Sejm. Why?

Creditors have been eagerly waiting adoption of one of the Commission’s key proposals that would permit multiple creditors to participate in one mortgage as security for a debtor’s financial obligations. Under current regulations each creditor must establish an individual mortgage against a debtor’s real property to secure repayment. But as of today, this proposal has been stuck in committee for further review.

A second set of amendments awaiting action by the Sejm would, if adopted, reduce the capital requirements to create both a limited liability company and joint-stock company from the current thresholds of PLN 50,000 and PLN 500,000, respectively, to PLN 5,000 and PLN 100,000.

Moreover, employers are still waiting for the Sejm to take action on another of the Commission’s proposals that would make the hiring of temporary workers much more flexible. Under current regulations, an employee hired on a temporary basis over a three month term may be deemed to be a ful- time employee entitled to full benefits and protections provided by the Labour Code. The Sejm has yet to take any action on this bill.

The Sejm needs to act upon the remaining 90 percent of the draft amendments proposed by the Commission. A passage rate of less than 10 percent, at least according to my understanding, would equal an “F” on a test exam. What are you guys waiting for?

-- Paul B. Fogo