Striking off from the National Court Register an entry that is unlawful

Publication / 27.04.2018

On December 8, 2017. The Supreme Court adopted a resolution (ref. III CZP 54/17), in which it indicated that “the registry court, within the proceedings set forth in Article 12(3) of the Act of August 20, 1997 on the National Court Register (…) for striking off an entry that is inadmissible due to applicable laws, is not authorized to examine the compliance with the law of a resolution of the shareholders’ meeting or general assembly, which constitutes the substantive legal basis for the entry made.”

The aforementioned resolution was issued on the basis of a case in which a limited liability company demanded that an entry on an increase in the company’s share capital be deleted from the register, arguing that the basis for the entry was an invalid legal action. The company claimed the invalidity of the action was based on the adoption of a resolution to increase the company’s share capital in ordinary form. The Supreme Court took the position that it is not within the competence of the registry court, within the framework of proceedings for the deletion of an entry that is inadmissible due to the applicable laws, to examine the validity of the legal actions constituting the basis for the entry.