There has been undertaken works on an important amendment to the Act on the National Court Register to regulate the sanctions envisaged for failure to file or timely filing of annual financial statements by obliged entities, including companies.
The aforementioned amendment envisages the elimination of the current coercive proceedings under which fines are imposed on entities failing to comply with the obligation.
Instead of the existing sanctions, the court will summon the company to submit financial statements, but not under the threat of a fine, but under the pain of marking the entity in question in the KRS with a clear label warning externally that the entity does not fulfil its reporting obligations despite the summons from the registration court.
The aforementioned notice as publicly visible, including to potential business counterparties, may affect the company’s image and credibility and is intended to motivate entities obliged to fulfil the obligations imposed by law to file annual financial statements in a timely manner.