Pursuant to the provisions of the Polish Commercial Companies Code, members of companies’ management boards bear civil and criminal liability for damages inflicted by their actions. That is why, companies conclude liability insurance contracts against possible damages inflicted by a management board member on the company or on third parties in connection with performing of their duties.

The recent judgment of the administrative court in Kraków (judgment of 22 April 2009, file no. I SA/ Kr 1563/ 08) interprets tax provisions in a manner unfavourable for the taxpayers. The court decided that expenditures for the civil liability insurance of members of company’s authorities cannot be recognised as its tax deductibles.

Contact person: Paweł Nowak,

pn@pnplaw.pl