The Economic Policy Committee within the Chamber of Deputies last Thursday dismissed a draft law which would have allowed privately owned companies to pay dividends twice a year, based on official reports and after having secured the approval of the general shareholders assemblies, Dan Radu Rusanu, chairman of the economic policy committee, told Mediafax.
The decision is similar to the one made by the Senate. At present, the companies may pay dividends once a year, the amount to be therefore paid being set by the General Ordinary Shareholders Assembly at the beginning of every year.
The decision of the Romanian politicians contradicts the practice of developed countries where shareholders are allowed much more freedom and subsequently may decide for dividends to be paid more than once a year. For instance, U.S.-based companies may pay dividends on a quarterly basis and there is also a deadline for such actions.
Rusanu grounded the dismissal on a "financial reason" and said that the six-month balance may show profit, while the annual balance may register a loss, due to payment of bills or suppliers, which shows that intermediary balance may lead to an inaccurate profit assessment.
The law draft was dismissed by the Senate early in March, and because of the dismissal report field by the Economic Policy Committee within the Chamber of Deputies, it will be subjected to the final vote of the Chamber plenum, as soon as it makes it on the agenda.
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