The distribution of profit between the shareholders or the associates of a company will also be possible quarterly during the financial year, within the limit of the net profit realized quarterly, according to a draft normative act that was adopted today by the Chamber of Deputies and will soon reach the head of state for promulgation. Currently, the law allows for profit distribution only after approval of the annual financial statements, which is a number of weeks after the end of the financial year.
According to a draft law passed on 13 June 2018 by the Chamber of Deputies, the distribution of profits among shareholders or associations of a company will also be made quarterly, during the financial year, within the limit of the net profit achieved quarterly.
Thus, in the Accounting Law no. 82/1991 it is introduced the provision that the quarterly distribution of profits to shareholders or associates may be made optionally during the financial year, up to the quarterly net profit plus any retained earnings and amounts withdrawn from reserves available for that purpose, of which any losses carried forward and amounts deposited in the reserve in accordance with statutory requirements, respectively on the basis of interim financial statements approved by the general meeting of shareholders or associates, shall be deducted.
Regularization of the amounts distributed during the financial year must take place after approval of the annual financial statements and the dividends distributed and paid in excess during the financial year are to be returned within 60 days from the date of approval of the annual financial statements. The restitution obligation occurs for the persons who have received dividends on a quarterly basis and the management of the company has the obligation to pursue the recovery of these amounts and to order the necessary measures for this purpose.
Persons who opt for the quarterly distribution of dividends are required to prepare interim financial statements. They are subject to audit if the persons who prepare them are required to audit the statutory annual financial statements or opt for auditing them.
Interim financial statements are also subject to review by auditors if the annual financial statements are subject to verification by censors.