ABSTRACT
Fala Ltd. is a Polish producer of a wide range of men’s, women’s, and children’s clothes and underwear made of a variety of materials ranging from cotton and velour to jersey. Fala Ltd. produces knitwear such as clothes, underwear, fancy goods, and other products, as well as knitted fabrics. The main goal of Fala’s management in negotiations had been to obtain as high a value as possible for the assets that Fala was contributing to the new venture. Fala Gdansk is an interesting example of a company that, within a relatively short time, functioned under three different forms of ownership: as a state-owned enterprise, as an employee-owned partnership, and as a limited-liability company that was more or less a joint venture. The chairman of the supervisory board was a director of the Gdansk Bank, with which Fala had financial dealings. The formal transformation of the company into a limited-liability company meant significant changes in the way the company was run.
