Legislator Case Law & Legislation
I PKN 605/99 AI generated

Single-member to three-member board change requires employee consent or termination notice unless company law stipulates variable composition.

Case Number I PKN 605/99
Court / Authority
Jurisdiction Poland (PL)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The Supreme Court dismissed the cassation appeal regarding a dispute over changes to employment conditions. The lower court ruled that expanding a single-member board to three members was merely an internal corporate matter not affecting the employee's contract. The Supreme Court held that such a structural change fundamentally alters the president's powers and duties, constituting a material change in the employment relationship. Consequently, the court determined that consent or a notice of change is required unless the company's articles of association explicitly allow for variable board composition.

Legislator headnote

AI generated

Art. 42 ust. 1 Kodeksu pracy; Art. 189 Kodeksu postępowania cywilnego: A change from a single-member to a multi-member board of directors constitutes a material alteration of the employment contract terms, necessitating mutual agreement or a notice of change unless the company's articles of association explicitly provide for a variable board composition.

Keywords

AI generated
single-member board employment contract material change notice of change articles of association labor law corporate governance

Cited Legislation

AI generated
Art. 42 ust. 1 Kodeksu pracy
Art. 189 Kodeksu postępowania cywilnego
Art. 393 § 1 Kodeksu postępowania cywilnego

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