Legislator Case Law & Legislation
I PKN 245/98 AI generated

Supreme Court allows hidden civil contract for director's management duties despite apparent employment agreement.

Case Number I PKN 245/98
Court / Authority
Jurisdiction Poland (PL)
Decision Date
Outcome Partially Allowed

Legislator summary

AI generated

The Supreme Court quashed lower court rulings that declared an employment contract void because the sole shareholder acted as both employer and employee. The court found that while the formal contract was flawed, the shareholder performed distinct commercial tasks like marketing and inventory management that exceeded typical board duties. Consequently, the court ruled that the relationship could be characterized as a valid hidden civil law contract rather than a void employment relationship.

Legislator headnote

AI generated

Art. 83 § 1 KC; Art. 58 § 3 KC: A director's management functions may constitute a valid civil law contract, even if disguised as an employment agreement, provided the performed duties differ from those of a board member.

Keywords

AI generated
hidden civil contract sole shareholder liability employment relationship voidness management duties commercial activities Supreme Court cassation civil law contract

Cited Legislation

AI generated
Art. 83 § 1 KC
Art. 58 § 3 KC
Art. 411 pkt 1 i 2 KC
Art. 494 w związku z art. 496 KC
Art. 409 KC
Art. 393 § 1 KPC

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