Succession Management is a form of temporary management of a business after the death of a business owner.
A Successor Manager should be appointed to carry out the management duties. He or she is responsible for running the company, for employees contracts, contacts with contractors, tax matters, Social Services (ZUS) until the inheritance formalities are settled.
The appointment of a Succession Manager may take place during the entrepreneur’s lifetime, through an appropriate entry in the Company Registration Office (CEIDG) or after the entrepreneur’s death. However, such action must be performed with the participation of a notary public and is limited in time.
Establishing a succession management board of the enterprise will avoid many negative consequences resulting from the death of a person running a business on the basis of an entry in the Company Registration Office (CEIDG). The advantages of this solution include:
- • keeping the tax identification number
- • continuity of employment relationships
- • continued validity and performance of civil law contracts
- • the possibility of further exercising powers under administrative decisions or facilitated transfer of powers (e.g. in the field of road transport) to a new entity
- • validity of promises granted by administrative authorities
- • the possibility of maintaining an entry in the register of regulated activities
- • continuity of tax settlements
- • providing access to corporate bank accounts
- • the possibility of pursuing claims arising from the conduct of business through the courts
- • the possibility to participate in commenced administrative and court-administrative proceedings