The Family Foundation in Poland. Legislation, Economic Impact and Historical Context
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Abstract
It has been more than a year now since Family Foundation Act (FFA) has entered into force in Poland in May 2023. This is the first regulation regarding family business wealth management. The need for such a regulation was reported by the environment of family businesses that is now facing generational change for the first time since communism failed in Central and Eastern Europe countries. In the article, we discuss the historical and economic context of the family foundations. Next, we discuss the basic assumptions of the Family Foundation Act, focusing mainly on family governance. We also outline the economic context of family foundations along with some estimates. Our conclusion is that granting family businesses a new succession model that is adapted to their needs should be assessed positively. However, in the context of foundation law itself a negative aspect of the new regulation is the legislator's decision to introduce a new type of foundations instead of extending the understanding of the already existing foundations.
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