In general, members of management boards of Polish company are personally liable with all their estate for the civil and tax debts of the company if it does not have sufficient assets to cover these debts. The liability of members of the management board may be excluded if they are able to prove that:
(i) they have filed a petition for the bankruptcy of the company in due time, or
(ii) they were not at fault for failure to file a petition for bankruptcy in due time.
Consequently, management boards should closely monitor the financial performance of the company in order to be able to swiftly react to the crisis and file a petition for bankruptcy if necessary.
It is also important to note that the management board should ensure that the insolvent company or the company threatened with insolvency should not prioritize any creditors (this includes also taxes or employees). This means that if the company does not have sufficient assets to pay to all its creditors, it cannot decide to fully repay only certain creditors.