Yareal Polska is marking its 20th year of operations in the Polish real estate market. Since its establishment in 2005, the company has completed 32 residential and office projects, delivering 4,000 apartments and more than 150,000 sqm of modern office space. As part of its continued development, Yareal plans to pursue a balanced strategy that includes both residential and office investments.

A subsidiary of the YAM Invest Group, Yareal Polska is managed by Yareal Polska Holding, which has equity exceeding PLN 450 million. From its early focus on boutique developments in central Warsaw, the company has grown into a team of over 50 employees and expanded its operations to include projects in the Tri-City area. Its development portfolio prioritises architectural quality and environmental responsibility, with new projects certified under the BREEAM green building standard.

Yareal’s residential developments are known for their design quality and environmental features such as green roofs, low-emission materials, and carefully planned public spaces. One example is the SOHO by Yareal project, where 17,000 plants and over 100 trees were integrated into a linear park. The company currently has almost 1,200 apartments under construction, with 1,000 more in preparation and over 2,000 planned on land already secured for future development.

In the office sector, Yareal manages around 80,000 sqm of commercial space in Warsaw, valued at more than €350 million. Its portfolio includes the LIXA office campus, and the company is developing new projects under a model that combines development and long-term asset management. Financing is initially provided by shareholders, with refinancing occurring only after the property reaches an occupancy threshold.

The company is also active in the commercial leasing segment. At SOHO by Yareal, more than 11,300 sqm of space has been allocated for retail and service tenants, while the LIXA City Gardens complex provides approximately 4,000 sqm of retail and restaurant space along a central pedestrian corridor.

Looking ahead, Yareal plans to continue its strategy of developing both residential and office projects. Several residential investments are in preparation, mainly in Warsaw, and the company continues to evaluate opportunities in the Tri-City region. In light of the decreasing availability of undeveloped land, Yareal is also considering adaptive reuse projects and acquisitions of existing buildings. The company sees potential in joint ventures and plans to maintain its focus on urban projects designed to a human scale.

Yareal is using its asset management capabilities to generate income from existing properties while preparing future development phases. This approach allows greater flexibility in adapting to current market conditions and launching new projects. The company views this combined development and operational model as a key part of its long-term strategy.

Poland is set to repeal Article 586 of the Commercial Companies Code, which imposed criminal penalties on company managers for failing to file for bankruptcy in a timely manner. Though the provision allowed for fines, restrictions of liberty, or imprisonment for up to one year, it was rarely enforced and had little practical impact. The Ministry of Justice’s decision to remove it reflects a shift toward more effective civil mechanisms for protecting creditors and encouraging responsible corporate governance.

Originally intended to compel swift action from management during a financial crisis, the provision proved difficult to enforce. Convictions were extremely rare, largely because proving intent was nearly impossible. Many managers, especially in small and medium-sized businesses, were unaware of the rule or viewed it as an empty threat. In practice, the law served more as a negotiation tactic than a functioning safeguard.

Rather than targeting dishonest behavior, the provision often created problems for managers attempting to restructure or rescue their companies. Recognising insolvency is rarely straightforward, especially in uncertain financial situations. Courts frequently relied on expert analyses that failed to reflect business realities, sometimes interpreting minor financial irregularities as signs of prolonged insolvency. This created legal exposure for managers acting in good faith, discouraging turnaround efforts and encouraging premature bankruptcy filings.

The repeal does not eliminate accountability. It redirects focus toward civil enforcement tools that are already in place and carry more serious consequences. These include personal liability under Article 299 of the Commercial Companies Code, which allows creditors to pursue managers directly if company assets cannot cover debts. Managers can also be held responsible for tax arrears under Article 116 of the Tax Ordinance. Additionally, courts can impose bans on holding management positions for up to ten years.

Civil proceedings offer creditors more effective means of recovering funds than criminal prosecution. Imprisoning a company director does little to resolve unpaid debts, while civil claims directly target personal assets and professional standing.

The decision also reflects broader legal trends in the European Union. A recent judgment by the Court of Justice of the EU (CJEU) in case C-278/24 highlighted the need for member states to ensure liability frameworks are proportionate and allow for individual assessment. The automatic nature of criminal penalties under Article 586 conflicted with this principle. Given the already extensive financial and legal exposure faced by managers, the added criminal provision was viewed as redundant and out of step with modern legal standards.

The repeal signals a move toward a more practical and effective legal framework—one that balances creditor protection with the realities of managing a business in distress.