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On what conditions can you opt for anticipated dividend repartition on the Romanian market?

On what conditions can you opt for anticipated dividend repartition on the Romanian market?
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Until recently, companies were allowed to distribute dividends only once per year, after the approval of the annual financial statements. That is to say, dividends related to the financial year 2017 could have been distributed during 2018, assuming shareholders would have decided for such distribution after the submission of the financial statements for 2017. 

The new Law no. 163 that was published in Official Gazette no. 595 on 12 July 2018 provides for the possibility for companies to make anticipated quarterly distribution of dividends, assuming such companies are in a net profit position, after deductions of any reported losses and/or reserves. In other words, Romanian companies will now be allowed to distribute dividends during a financial year from the quarterly net profits obtained during the same year. Of course, such distribution would be possible under certain conditions, such as, for each distribution of dividends, companies are obliged to prepare and submit interim financial statements. For example, audited companies cannot proceed with anticipated distribution of dividends unless the interim financial statements were previously audited by a certified auditor.

These are just a few of the legal conditions under which companies are allowed to opt for anticipated dividend repartition. For an in-depth analysis on how exactly these new legal changes can be implemented, we can deliver a complete report of the matter, by considering the exact facts and circumstances applicable to the company.

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