IT problems continue to hamper National Court Register

What exactly is wrong with the KRS' computer system and the central information system" Just over a year ago, the National Court Register Act (Ustawa o Krajowym Rejestrze Sądowym) of Aug. 20, 1997, went into effect. This Act promised the creation of a modern and efficient central court registry - the National Court Register (KRS or Krajowy Rejestr Sądowy) - to maintain registry courts as part of a computer database. Many articles were written before and after the Act took effect, criticizing its practical implementation and the KRS itself. This article provides an update on how the KRS is working in practice.The National Court Register Act superceded the commercial register order of Jul. 1, 1934, that up until Dec. 31, 2000, regulated the operation of the commercial register and the registration of business entities in Poland. Pursuant to the National Court Register Act, the court register was supposed to be operational by Jan. 1, 2001, as an electronic database composed of the following three separate registers:
• A register of business entities covering most companies and partnerships as well as state-owned enterprises and other bodies engaged in business activity subject to registration in the register of societies;
• A register of societies covering other social and professional organizations, foundations and public social service institutions;
• A register of insolvent debtors.The KRS' central information system was supposed to quickly provide current information on entities subject to registration in one of the three above registers. Its chief purpose is to provide information obtained from the KRS via the registry courts and issue certified copies and extracts. Unfortunately, this computerized central database was not operational until last March due to problems with the IT system.
The KRS is supposed to provide instant information such as names of shareholders and the financial details of a company operating anywhere in Poland - information previously not available in extracts from the former commercial register. To date, the KRS is open to the general public and maintained as a computer database by registry courts based throughout different regions in Poland, operating within district courts that have jurisdiction over a particular province. As long as the computer system is operational, the KRS provides fast and useful information on companies conducting business in Poland.
This means that today, as nearly a year ago, the main problem with the KRS is its malfunctioning computer system. Here in Warsaw, it was impossible during the past week to obtain an extract of a company based outside the capital in the business entities' register because the computer system was not operational. Therefore, in practical terms, a scheduled closing had to be postponed until an extract could finally be obtained from the KRS. It is impossible to specify the exact date when the computer system will be fully operational but such delays cost time and money. So what exactly is wrong with the KRS' computer system and the central information system" If the system's main server is not equipped to process the vast amount of data received from the registry courts and regional servers, why was this data capacity problem not foreseen" After all, the National Court Registry Act was adopted nearly four and a half years before the KRS was to be created. The government invested a large sum of taxpayer's money in setting up the KRS IT system. If indeed this is the problem, the IT system must be upgraded so that the database software of its central server and all its regional servers have the capability to input the data required by law and integrate it into the central information system.
The technical problems that arose from the very beginning and still exist today are completely contrary to the intention of the Act - to assist businesses and investors in obtaining fast and reliable information about potential partners. The delays caused by the continuous problems with the KRS computer system hinder companies and investors who need a modern and efficient central court register to conduct their business transactions in Poland. For these reasons, it is imperative that the KRS be fully operational immediately to fully serve its purpose and provide fast and accurate information on entities registered therein. Fatima Kierski is a lawyer at White & Case W. Daniłowicz, W. Jurcewicz i Wspólnicy " Kancelaria Prawna Spółka komandytowa.