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EMERGING MARKETS: EMERGING MARKETS: Review A of Business and Legal I Emerging Markets: A Review of Business and Legal Issues VOLUME 2 | No 3 | November 2010 ssues ssues Articles: The contribution of the nobility from Lublin to the work of the state’s reform in the early days of the activity of the Great Sejm by Waldemar Bednaruk Making authentication by public authorities by Ewa Pierzchała The Significance of Good Banking Practice in the VOLUME 2 No 3| NOVEMBER | 2010 (8) contractual relations of banks with their client by Edyta Rutkowska - Tomaszewska EMERGING MARKETS: A Review of Business and Legal Issues The purpose of the journal is to provide forum Emerging Markets : for international, interdisciplinary work on the A Review of Business and business and legal issues confronting emerging markets. Legal Issues The journal combines theoretical soundness and practical relevance. The articles guide policy WWW.KENTLAW.EDU/EMERGINGMARKETS makers while also advancing theoretical understanding. Editorial Board Advisory Board Richard Warner Edward Carter Editor In Chief Assistant Illinois Attorney General Professor of Law Supervisor of the Financial Crimes Prosecution Unit Faculty Director, Center for Law and Computers Adjunct Professor of Law Chicago-Kent College of Law Chicago-Kent College of Law, Chicago Visiting Foreign Professor, Director School of American Law, University of Gdańsk, Poland Anna Fornalczyk Director, School of American Law, University of Partner - Założyciel Wrocław, Poland; COMPER Director, School of American Law Kharkiv Fornalczyk i Wspólnicy [email protected] David Gerber Agnieszka Cenzartowicz Distinguished Professor of Law Associate Editor Co-Director of the Program in International and Adjunct Professor Comparative Law Chicago-Kent College of Law Chicago-Kent College of Law [email protected] Henry Peritt, Jr. Lukasz Grzejdziak Professor Associate Editor Director of the Graduate Program in Financial Services Law Igor Solodovnik Chicago-Kent College of Law Associate Editor Adjunct Professor Wojciech Rogowski Chicago-Kent College of Law Expert, Economic Institute National Bank of Poland Tomasz Gulla Assistant Professor Associate Editor Warsaw School of Economic Editor In Chief Printpol.pl (legal-insurance service) Editor In Chief European Center for Combating Judge Dariusz Sielicki Insurance Fraud (ECCIF) Ministry of Justice, Warsaw Adjunct Professor of Law Publisher: Chicago-Kent College of Law, Chicago Emerging Markets Review ul. Wachowiaka 28/8, 81-418 Gdynia, POLAND Disclaimer: Statements of fact and opinion in the articles in Emerging Markets Review are those of the respective authors and contributors and not of the Emerging Markets Review. Emerging Markets Review make any representation, express or implied, in respect of the accuracy of the material in this journal and cannot accept any legal responsibility or liability for any errors or omissions that may be made. The reader should make her or his own evaluation as to the appropriateness or otherwise of any experimental technique described. They are put forward to stimulate discussion. Cover design & Photo: Tomasz Gulla Page 2 VOLUME 2, No 3, November 2010 (8) EMERGING MARKETS: A Review of Business and Legal Issues COTETS Articles: The contribution of the nobility from Lublin to the work of the state’s reform in the 4 early days of the activity of the Great Sejm by Waldemar Bednaruk Making authentication by public authorities by Ewa Pierzchała 16 The Significance of Good Banking Practice in the contractual relations of banks with 23 their client by Edyta Rutkowska - Tomaszewska Page 3 VOLUME 2, No 3, November 2010 (8) EMERGING MARKETS: A Review of Business and Legal Issues AUTHOR: dr Waldemar Bednaruk “The contribution of the nobility from Lublin to the work of the state’s reform in the early days of the activity of the Great Sejm” The period of the reign of the last Polish king Stanisław August Poniatowski was when the thought of the necessity of radical changes grew in the minds of the nobility. The previous sejm (parliament) underwent degeneration in the course of the former hundred years and that gave rise to numerous pathologies, resulting in considerable weakening of the once powerful state. The election system of appointing the king which allowed the nobility to decide upon the most appropriate candidate now led to destructive wars. Instead of the nobility and their support it was the foreign courts which arbitrarily settled behind the backs of the electors who was to rule in our country and which had the decisive voice in the victory of a given candidate. The principle of unanimity in passing resolutions of the sejm and sejmik (small parliament), which forced the gentry to seek a – frequently difficult – compromise for the sake of the whole country in the course of time changed into the right to immediately end the current sessions by a single person through liberum veto. In such a case, personal ambitions and animosities replaced the assumed cooperation, which gave way to paralyzing the most important organ. Foreign countries as well as magnates who were against any changes did not fail to take advantage of that situation. Without an efficiently functioning parliament and with limited competences of the king, it was impossible to reform the inefficient tax system or reconstruct the small and poorly-equipped army. Changes had to be introduced in the archaic law and corrupted and inefficient law courts. A part of the nobility with conservative views held the opinion that the country could be cured by returning to the roots, good example and strict observance of the binding law. It was argued that if in the past this system worked effectively and made Poland a land flowing with milk and honey and a power playing the foremost role in the world’s politics, then it was enough to keep to the old rules and then the times of abundance and splendour would come back. Page 4 VOLUME 2, No 3, November 2010 (8) EMERGING MARKETS: A Review of Business and Legal Issues Conservatives also feared the loss of numerous privileges of the nobility class which – during the political transformation – could suffer a loss. Therefore, they preferred to avoid any deep transformation of the existing political system. 1 A different opinion was held by the camp of advocates of changes who were concentrated around the pro-reformist group called “Familia” headed by the powerful Czartoryski family. The reformers postulated a deep restructuring of the existing system of rule. They maintained that further support of the old political solutions could lead to a disaster, which was signalled by the First Partition of Poland executed by Russia, Austria and Prussia in 1772. The king, who together with his supporters centred around the royal camp, saw the numerous worries vexing his subjects. However, the king – cautious by his nature – did not want to undertake any steps without the consent of his protector – the ruler of Russia. The latter did not agree for the reforms that could strengthen the Polish state and as a consequence lead to its independence from Russia. It was the more or less diplomatic behaviour of Catherine II of Russia that made it impossible to conduct the necessary changes for a number of years to a greater extent than the resistance of the domestic conservatives. 2 In the middle of the 1780’s the approaching conflict between Russia and Turkey and the cooling in the relations between our neighbours seemed to favour realization of the aims planned for long. In May of 1787 Stanisław August met the ruler of Russia and offered her aid in the imminent war with Turkey in return for her consent for certain necessary political reforms. However, Catherine rejected his offer and did not agree for any changes in Poland. Three months later the Russian-Turkish war broke out; however, despite the renewed offers from the Polish king, the empress remained stiff-necked and consistently refused her permission for any reforms. In the spring of 1788 the king issued a Universal calling the nobility to take part in the small parliament where they should appoint the deputies to the General Sejm. In his Universal, 1 Cf. W. Rzewuski, Myśli o teraźniejszych okolicznościach Rzeczypospolitej. Poczajów 1756, p. D2. 2 For a number of years, Russian troops were deployed in the area of Poland, constituting a strong element of pressure on the king and the nobility. They did not leave Poland until 1780. On the other hand, Russian diplomats controlled the activities of Stanisław August, informing their ruler on any attempts to make independent decisions in important matters of interior and foreign policies and nipped too daring initiatives in the bud, cf. Wielka historia Polski, ed. by M. Szulc, Kraków 1998, Vol. V, p. 129. Page 5 VOLUME 2, No 3, November 2010 (8) EMERGING MARKETS: A Review of Business and Legal Issues the monarch assured his subjects that his will to do good and to reform the state was permanent and unchanged and that was why he encouraged them to elect true patriots having regard for homeland’s welfare and its urgent needs. He drew attention to the country’s difficult situation and the need to accomplish the necessary changes. 1 In reality, however, he feared taking any bold steps without the consent of Catherine the Great, still hoping at this stage that she would make concessions. In the meantime, he made efforts to secure as great a number of deputes as possible who were his supporters. He sent his emissaries to particular voivodships and lands so that they could prepare a campaign for the candidates that were faithful to the king. He wrote letters to his adherents, encouraging them to actively join in the election campaign and he persuaded those indecisive to declare themselves on the side of the royal court. Meanwhile, a unique opportunity to make radical political changes were noticed by the leaders of the reformist camp.