The case of Zakłady Mięsne Henryk Kania is one of the most significant corporate fraud cases in Poland, involving allegations of accounting fraud, asset stripping, and the use of foreign corporate structures – including a Liechtenstein private foundation – to hide assets from creditors.
The case background
Zakłady Mięsne Henryk Kania was one of the largest meat processing companies in Poland, listed on the Warsaw Stock Exchange. The company went bankrupt in 2019 amid allegations of massive accounting fraud, leaving hundreds of creditors with unpaid claims totaling hundreds of millions of zlotys.
Key allegations include: falsification of financial statements to overstate the company’s value, creation of artificial receivables, and the systematic transfer of assets to structures outside Poland – including a private foundation in Liechtenstein – to place them beyond the reach of creditors.
Can creditors pursue a foreign foundation?
This is the central legal question. Pursuing assets in a Liechtenstein foundation presents unique challenges:
- Jurisdictional issues – creditors must establish jurisdiction in Liechtenstein courts or seek enforcement of Polish judgments there.
- Foundation structure – a properly established foundation is a separate legal entity; its assets do not belong to the founder.
- Fraudulent transfer doctrine – if assets were transferred to the foundation with the intent to defraud creditors, the transfer may be challenged (actio pauliana).
- Piercing the foundation veil – in extreme cases of abuse, courts may disregard the foundation’s legal personality.
Practical considerations:
- International cooperation between Polish and Liechtenstein authorities is essential but often slow.
- Legal costs of pursuing cross-border claims are significant.
- Timing is critical – limitation periods apply.
- Collective action by creditors may be more effective than individual claims.
Paweł Osiński
Attorney, expert in asset protection, private foundations, and cross-border litigation