ECONOMY FINANCE&BANKING

Gov’t moves to cash minimum 90 pct of state-run companies’ net profit

The Romanian Government empowered the state representatives in the General Stakeholders Assembly (AGA) and Boards (CA) with the national companies and the companies with full or majority state capital, as well as the autonomous administrations to take the necessary steps to distribute a minimum 90 pct ratio of their net profit on 2016 (dividends / payments) to the state budget, reads a release of the Government.

The decision was made through a Memorandum endorsed on Friday’s sitting.

The said measure is not applied to the companies that have regulated another way of distributing their net profit through other laws, adds the release.

The government specifies that according to the current law, the distribution of the net profit is approved by the AGA, in case of the commercial companies, and the CA, in case of the autonomous administrations.

A former Emergency Ordinance of Government (OUG 64/2001) on that issue was regulating that the said entities were to pay to the estate budget “minimum 50 pct of their net profit,” the release reminds.

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