Intercompany service agreement and supporting documents for a Romanian subsidiary, shown on a desk between two corporate files.

Intercompany Services for a Romanian Subsidiary: Review Scope, Authority and Contract Evidence

In brief: An intercompany service agreement should identify the actual provider, the Romanian recipient, the work to be done, the fee mechanism and the records that will show what was delivered.

A group-wide policy, a monthly invoice or a parent-company approval does not, by itself, answer all of those questions.

For a Romanian subsidiary, the review should connect the contract to corporate authority, operating evidence, accounting records, related-party pricing and any data-processing role.

A foreign group may centralise finance, IT, HR, procurement or management support while its Romanian subsidiary remains a separate contracting and accounting entity.

The commercial question is whether the subsidiary has a clearly defined reason to buy those services, an expected economic or commercial benefit and a workable way to verify the resulting charges.

This guide concerns service arrangements between companies in a group, especially an SRL receiving services from a foreign parent or affiliate; it does not treat a shareholder loan, dividend, licence or employee secondment as the same transaction.

What should the intercompany agreement actually cover?

Start with the services and the recipient’s benefit, then make authority, pricing and evidence follow that operating model.

Identify each legal entity by its registered name and role, including whether the foreign company supplies services directly or merely coordinates another group provider.

A schedule should describe the service categories, the Romanian teams that request them, the expected outputs, the service period and the person who can confirm delivery.

Separate support provided to the subsidiary from activities performed principally for the parent as an investor, and identify any overlap with the subsidiary’s own staff or another group supplier.

The Romanian company should be able to explain why it needed the service and what economic or commercial benefit it obtained or reasonably expected from it; that approach is consistent with the transfer-pricing principles explained in ANAF’s guidance on intra-group services and transfer pricing.

A vague description such as “management services as required” may be hard to administer when a Romanian director later needs to explain the fee, approve an invoice or prepare a transaction data room.

Our Romanian contract-review guide covers the wider questions of parties, authority, payment, liability and exit that should also be checked here.

Contract pointQuestion for the Romanian subsidiaryRecord to retain
Scope and ordersWhich tasks are included, who can request them and how are changes approved?Signed schedule, service requests and change approvals.
Fee and allocationIs the price fixed, time-based or allocated across group entities, and what costs are included?Calculation method, allocation keys, supporting cost data and invoices.
Delivery and acceptanceWhat output or service activity will the Romanian recipient be able to verify?Work product, tickets, reports, meeting records and acceptance trail.
People and accessWill provider staff access systems, personal data, intellectual property or sensitive files?Access approvals, confidentiality terms and any required data schedule.
Exit and disputesWhat happens to unfinished work, data, fees and licences when services stop?Termination notice, handover plan and reconciliation.

Who can sign for the Romanian subsidiary?

The first authority check is the subsidiary’s current representation structure, using its constitutive act, relevant associates’ resolutions, any power of attorney and the records available from the National Trade Register Office (ONRC).

The Trade Register record is important, but it does not replace a review of the documents establishing the particular signatory’s authority.

Article 70(1) of Romanian Companies Law no. 31/1990 on the Legislative Portal addresses administrators’ powers in relation to the company’s business and restrictions in its constitutive act.

For an SRL, Article 197(1) provides that the company is administered by one or more administrators, whether associates or not, appointed by the constitutive act or by the general meeting of associates.

If a manager, employee or external adviser signs instead of the registered representative, check the underlying authority, including the express empowerment required by Article 71(1) for an administrator to transmit the right of representation, as well as the foreign provider’s own signing authority.

An associates’ resolution may be needed under the constitutive act or the transaction’s particular governance arrangements, but an intercompany service contract does not automatically require a separate vote merely because the parties are affiliated.

If a proposed associates’ resolution concerns a legal act directly between the SRL and one of its associates, Article 193(2) prevents that associate from voting on the resolution.

A service contract with another affiliate does not automatically trigger that voting restriction or require an associates’ resolution.

Our guide to Romanian company director liability explains why a group instruction should be assessed alongside the director’s duties to the Romanian company.

Sole-shareholder SRL: Article 15 of the Companies Law requires contracts between an SRL and its sole shareholder, whether a natural or legal person, to be in writing under penalty of absolute nullity.

This statutory form rule applies where the sole shareholder itself is a party to the contract; it does not automatically extend to an agreement with a sister company or another affiliate.

What evidence should accompany the contract and invoices?

Build a record that lets the Romanian company identify what it requested, what was done, when it was done, who received it and how the charge was calculated.

Article 6(1) of the Romanian Accounting Law no. 82/1991 on the Legislative Portal requires an economic or financial transaction to be recorded in a supporting document when it occurs, as the basis for accounting entries.

For recurring services, a useful file may include requests, tickets, time records where relevant, reports, deliverables, correspondence and the subsidiary’s review or acceptance of the work.

For shared services allocated among several entities, keep the allocation method and data used for the period, together with a way to reconcile the charge to the agreement and invoice.

A signed agreement and invoice are important, but their existence alone does not prove actual performance, the subsidiary’s business benefit or the appropriateness of the arm’s-length pricing and allocation methodology.

Preserve the work product in a usable form: a monthly invoice for “consulting” should be traceable to identifiable advice, actions, access, reports or operational support when those are what the agreement promises.

How should pricing and transfer-pricing review fit together?

Legal counsel should test whether the parties have agreed a sufficiently clear pricing and adjustment mechanism, while the accountant and tax adviser should assess the accounting and tax treatment of the actual charges.

Under Article 11(4) of the Romanian Fiscal Code published by ANAF, affiliated-party transactions are examined against the arm’s-length principle, with adjustment or estimation powers in the statutory circumstances.

The agreement should therefore explain whether the fee uses a fixed rate, time charges, a cost allocation or another method, and identify what documentation the provider will supply to support the calculation.

Do not assume that a generic cost-plus label, board approval or payment of an invoice settles the Romanian tax analysis.

For a subsidiary subject to profit tax, Article 25(1) of the Fiscal Code published by ANAF links the general deductibility rule to expenditure incurred for the purposes of the company’s economic activity.

The tax adviser should assess the service’s actual performance, business purpose, supporting records and any specific tax conditions or limitations before concluding that a particular charge is deductible.

The tax adviser should determine which transfer-pricing documentation rules apply to the taxpayer, period, transaction values and procedure, including the transitional provisions in the National Agency for Fiscal Administration (ANAF) Order no. 828/2026.

Under Article 15(1) of that order, its Article 2(1) annual-file rule for qualifying large taxpayers applies to affiliated transactions carried out from 2026.

Article 15(2)–(3) separately addresses tax administration procedures initiated after 1 January 2027 and preserves the previously applicable rules for procedures initiated before then.

Cross-border service payments may also raise VAT, withholding-tax or permanent-establishment questions depending on the actual services and jurisdictions; obtain transaction-specific tax advice before fixing invoice language or payment mechanics.

If the intended transaction is funding rather than payment for services, our Romanian shareholder-loan guide addresses that separate legal structure.

When do personal data and intellectual property need separate terms?

If the foreign provider processes personal data on the subsidiary’s behalf, define the actual controller and processor roles and put the required processing terms in the agreement or a separate schedule under Article 28(3) of the EU General Data Protection Regulation on EUR-Lex.

Group affiliation does not itself determine those roles: the entities may instead be independent controllers, joint controllers or parties to a relationship that does not involve processing personal data on another’s behalf.

Where personal data is transferred to a provider outside the European Economic Area, the parties should also assess the GDPR’s international-transfer rules in light of the actual data flow.

Our data-processing agreement guide for Romania explains the controller–processor contract and the operational terms that need to match the service arrangement.

For IT, design, marketing and product work, identify who owns existing materials and new deliverables, whether the subsidiary receives a licence or assignment, and what happens to access and source materials after termination.

Confidentiality, cybersecurity, subcontracting and access to systems should reflect the work actually carried out, rather than simply copying a group policy into the signature pack.

What if the group has already been charging for services?

Review the period chronologically: who requested the work, the services actually delivered, the invoices issued, the payment trail and the written arrangements that existed at the time.

A later agreement may help establish a prospective framework, but it should not be backdated to suggest that an undocumented earlier approval or service record existed.

Where records are incomplete, separate what can be reconstructed from contemporaneous evidence from what remains uncertain, and involve the accounting and tax teams before changing past entries or invoices.

For future periods, amend the schedule, name the Romanian recipient’s approver and set a repeatable monthly or quarterly evidence process.

What should the group send for a focused legal review?

  1. Current draft or signed agreement, schedules, amendments and group policies incorporated by reference.
  2. Romanian subsidiary’s constitutive act, current representation information and any relevant associates’ resolutions or powers of attorney.
  3. Service descriptions, requests, sample deliverables, reporting and acceptance records for a representative period.
  4. Invoices, calculation examples, allocation keys and the commercial explanation for each material fee category.
  5. Data-flow description, access list, existing data-processing terms and intellectual-property or licence documents where relevant.
  6. Questions already raised by the accountant or tax adviser, including whether a transfer-pricing file or other tax analysis is required.

That package lets counsel review the contract and corporate authority against the way the group actually operates, rather than commenting on a template in isolation.

Practical result: a well-scoped review can identify missing authority, overbroad service descriptions, unsupported charges, inconsistent data terms and gaps in the subsidiary’s evidence process before the next invoice cycle or due-diligence request.

Intercompany service agreement review in Romania

Atrium Romanian Lawyers can review or draft the Romanian-facing agreement, service schedules and corporate approval documents, and coordinate legal points with the group’s accounting, tax and data-protection advisers.

Send us the contract, the parties’ structure and a sample of the services and charges so the review can focus on the actual transaction.

Frequently asked questions

Does a Romanian subsidiary need a written agreement with its foreign parent?

If the parent is the SRL’s sole shareholder and is itself the contracting party, Article 15 of Companies Law no. 31/1990 requires the contract to be in writing under penalty of absolute nullity.

For other group relationships, review the parties and applicable form requirements separately, while retaining a clear written record of scope, price and authority.

Is an invoice enough to evidence management services?

An invoice should be supported by records showing actual performance, the Romanian recipient’s business need or expected benefit, the service period and the pricing calculation, with accounting and tax treatment assessed for the actual transaction.

Does every intercompany service agreement require an associates’ resolution?

No general rule makes a separate resolution automatic for every affiliate service contract; check the constitutive act, signing authority and any conflict or reserved-matter rules that apply to the particular SRL.

Does a group service fee automatically meet Romanian transfer-pricing rules?

No; the fee and allocation method require transaction-specific arm’s-length analysis, and the tax adviser should assess the applicable documentation thresholds and transitional timing rules.

Is a data-processing agreement required for all group services?

No; a controller–processor contract under Article 28(3) GDPR is required where one entity processes personal data on behalf of the other, so the parties’ actual roles must first be assessed.

This article provides general information about Romanian intercompany service arrangements and is not legal, accounting or tax advice for a particular transaction.

Applicable law and administrative requirements should be checked for the contract, service period and payment date in question.

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Romanian company director liability and corporate governance risk assessment

Romanian Company Director Liability: Duties and Risks

When can Romanian company director liability arise?

The company is a separate legal person, but that shield is not absolute. A director may face personal exposure for breach of corporate duties, insolvency misconduct, bad-faith tax conduct, a personal guarantee or other unlawful acts.

COMPANYSEPARATE LEGAL PERSONLiability shield BREACH OF DUTYloss + causationINSOLVENCYArticle 169 conductTAX LIABILITYbad-faith conductPERSONAL GUARANTEEcontractual exposure AI-generated illustration

Romanian company director liability does not arise automatically from the company’s debts. Personal liability requires a separate legal basis, such as a damaging breach of the director’s mandate or statutory duties, conduct that contributed to insolvency, bad-faith conduct connected with unpaid taxes, or a personal contractual commitment. Foreign directors should verify their registered powers, keep an evidence trail for material decisions and escalate financial distress early.

Accepting a director appointment in Romania is more than an administrative formality. Understanding Romanian company director liability requires reviewing both the legal mandate and the director’s actual decision-making role. The director may represent the company, commit it contractually, manage assets and supervise accounting, tax, employment and regulatory processes. Those powers carry duties to the company under the articles of association, shareholder resolutions, the rules on mandate and Romanian company law.

The exact framework depends on the company form and governance structure. The Romanian term administrator may refer to an administrator of a limited liability company (SRL) or a member of the board of directors of a joint-stock company (SA). An SA may also use a two-tier system with a management board and supervisory board. The appointment document and the articles of association should therefore be read before applying any general rule.

Is a Romanian company director personally liable for company debts?

Generally, no. An ordinary supplier, landlord or lender claim is normally against the company. The director becomes personally exposed only where the creditor or another claimant can rely on a distinct statutory, contractual or delictual basis and prove the elements required for that route.

This distinction matters. A company’s inability to pay does not, by itself, transfer every unpaid invoice to its director. Equally, the words “limited liability” do not protect a director from consequences of their own conduct.

SituationUsual starting pointPotential director exposure
Ordinary commercial debtThe company is the contracting party and primary debtor.No automatic personal liability merely because the company does not pay.
Breach of mandate or company-law dutyThe company may have suffered loss through the director’s act or omission.Liability may arise if breach, damage and causation are established under the applicable rules.
Insolvency misconductThe company enters insolvency with unpaid liabilities.The insolvency court may order persons who contributed to insolvency through conduct listed in Article 169 to bear part or all of the liabilities, within the causally connected loss.
Unpaid tax obligationsThe company remains the tax debtor.Joint liability may be established in the bad-faith situations listed in Article 25 of the Fiscal Procedure Code.
Personal guaranteeThe company receives finance, a lease or credit.The director may be liable under the separate guarantee they signed, according to its terms.
Separate unlawful actThe director acts personally as well as for the company.Civil, administrative or criminal consequences may apply depending on the specific act and statute.

Do not confuse shareholder liability with director liability. A shareholder’s exposure as an investor and a director’s exposure as a manager are different questions. One person may hold both roles, but each potential claim needs its own legal basis.

What are the core duties of a Romanian company director?

Articles 72 and 73 of Romanian Companies Law no. 31/1990 connect administrators’ obligations and liability to the rules on mandate and the special provisions of the Companies Law. They also identify responsibility toward the company for matters including the reality of capital contributions, the actual existence of distributed dividends, legally required registers, implementation of shareholder resolutions and strict performance of duties imposed by law and the articles of association.

Duty areaPractical meaningUseful evidence
Act within authorityFollow the law, articles of association, appointment terms and valid shareholder or board resolutions.Current constitutional documents, authority matrix, registered representation powers and written approvals.
Protect company interestsUse management powers for the company rather than for an undisclosed personal or third-party benefit.Conflict disclosures, abstentions, independent valuations and documented commercial rationale.
Make informed decisionsObtain information proportionate to the value, urgency and risk of the decision.Board packs, forecasts, legal and financial advice, alternatives considered and minutes.
Supervise records and complianceEnsure required registers and accounting records exist and that delegated functions are reasonably monitored.Compliance calendar, management reports, tax confirmations, audit trails and escalation logs.
Implement corporate decisionsCarry out valid shareholder decisions accurately and within the company’s legal powers.Signed resolutions, implementation plans, filings and completion records.
Preserve confidentialityProtect confidential information and business secrets during and, where applicable, after the mandate.Access controls, confidentiality undertakings and documented return or deletion of company information.

For SA board members, Article 1441 of Romanian Companies Law no. 31/1990 expressly requires prudence and diligence of a good administrator, loyalty in the company’s interest and confidentiality. It also recognises an informed-business-decision protection where the director was reasonably entitled to believe that the decision served the company and relied on adequate information. That provision should not be copied mechanically into an SRL analysis; the SRL’s own statutory rules, mandate and constitutional documents must be assessed.

Decision record

A defensible director decision has four layers

1AUTHORITYWho may decide?Which approval?2INFORMATIONFacts and forecastsProfessional advice3CONFLICTSDisclose interestsManage participation4MINUTESRationale and voteActions and follow-up AI-generated illustration
The file should show how the decision was authorised, informed, conflict-checked and implemented—not merely its eventual outcome.

How do SRL and SA director duties differ?

An SRL is usually managed by one or more administrators appointed through the articles of association or by the shareholders. Article 197 contains SRL-specific administration rules and refers expressly to Articles 75, 76, 77(1) and 79. Articles 72 and 73 remain central to the mandate-based duties and liability framework, but the articles of association are also essential because they define individual or joint representation, reserved matters, term of office and internal approval limits.

An SA has a more prescriptive governance framework. In the one-tier system, a board of directors may delegate management to directors; in the two-tier system, the management board operates under a supervisory board. Duties, delegation, conflicts, meeting procedure and the mechanics of corporate liability actions can therefore differ materially from an SRL.

Foreign group policy is not enough. A director of a Romanian subsidiary must apply the subsidiary’s Romanian-law documents and duties. Instructions from the parent company, investor or beneficial owner do not automatically excuse an act outside authority or against the Romanian company’s interests.

Before accepting or using the mandate, confirm the director provisions in the Romanian articles of incorporation. Where governance rights are also allocated between investors, coordinate those documents with the shareholder agreement while recognising that a private agreement does not replace mandatory corporate rules or Trade Register formalities.

When can the company claim against a director?

A corporate claim typically focuses on whether the director breached an applicable duty and caused quantifiable loss to the company. The decision and representation mechanics depend on the company form, the alleged conduct and the applicable articles of the Companies Law. Article 155 contains the general-meeting mechanism for an SA action against directors for damage caused to the company through breach of their duties.

Approval by shareholders should not be treated as a universal release. The legal effect depends on what was disclosed, the nature of the decision, the company form, mandatory law, third-party rights and whether the approving body had authority. A director should still require accurate materials and record concerns.

Unauthorised transaction

A director signs beyond registered or internal powers and the company suffers loss. Liability, enforceability and internal recourse require separate analysis of the authority documents and third-party circumstances.

Related-party benefit

Company assets or opportunities are directed to a connected party without transparent approval, adequate information or defensible commercial terms.

Ignored compliance warning

Management receives a specific accounting, tax or regulatory warning but takes no proportionate action, allowing avoidable loss to increase.

When can insolvency create personal exposure?

Financial distress is a critical turning point. Article 66 of Romanian Insolvency Law no. 85/2014 generally requires an insolvent debtor to apply to the tribunal within a maximum of 30 days from the onset of insolvency, subject to the statute’s rules for good-faith restructuring negotiations. The competent tax authority must be notified of the intended insolvency application 15 days before filing, and proof of that notification must be attached to the application. A legal entity’s application is signed by the persons authorised to represent it under its constitutional documents; a shareholder resolution is not required by Article 66(5).

Under Article 169, the insolvency court may order management or supervisory members, any individual or legal entity exercising control over the debtor’s financial or operational decisions regardless of formal title, and other persons who contributed to insolvency through listed conduct to bear part or all of the debtor’s liabilities, without exceeding the loss causally connected to that conduct.

Article 169 risk categoryExamples of evidence reviewed
Using company assets or credit for personal or third-party benefitRelated-party payments, asset transfers, undocumented loans and non-commercial terms.
Conducting personal business under cover of the companyRevenue diversion, overlapping contracts, beneficial ownership and use of company resources.
Continuing activity in personal interest when cessation of payments was clearly approachingCash-flow forecasts, creditor ageing, director benefits and the rationale for continued trading.
Fictitious, unlawful or missing accountingLedgers, source documents, backups, handover records and access to accounting systems.
Diverting or concealing assets, or fictitiously increasing liabilitiesAsset registers, disposals, inventory movements, invoices and connected-party balances.
Transferring assets or a significant part of the business to a closely related personTransfers made while the debtor is in financial difficulty, compliance with Article 73(2¹) of the Companies Law, the relationship between the parties, continuation of the business through the new entity and evidence of an intention to shield assets from creditors.
Ruinous financing used to delay cessation of paymentsPricing, security, repayment prospects, alternatives considered and decision minutes.
Preferential payment to one creditor shortly before cessationPayment sequence, creditor relationship, maturity dates and justification.
Other intentional conduct contributing to insolvencyThe specific act, intent, resulting loss and causal connection to insolvency.

Law no. 239/2025 inserted Article 169(1)(e1), which specifically targets the transfer of assets or a significant part of the business of a debtor in financial difficulty to a person closely related to the debtor, where the obligations imposed by Article 73(21) of the Companies Law are breached and the transfer is intended to continue the activity through the new entity while shielding assets from the debtor’s creditors.

A final Article 169 liability judgment now has consequences beyond the payment order. Under Article 169(10), the person may not be appointed as a company administrator and, if already serving as an administrator elsewhere, loses that right for 10 years from the date the judgment becomes final. The person is also barred for 5 years from founding companies or acquiring a controlling participation in a new company.

Distress response

The evidence trail becomes more important as liquidity deteriorates

1MONITORCash and arrears2VERIFYSolvency status3ADVISELegal and financial4DECIDERestructure or file5PRESERVERecords and handoverAI-generated illustration
Early monitoring and documented advice help directors distinguish temporary pressure from statutory insolvency and respond within the applicable deadline.

Failure to hand over accounting records can create a rebuttable presumption of fault and causation under Article 169. For collegial management or supervisory bodies, a member who opposed the relevant act and recorded the opposition may have a specific defence under Article 169(5). A silent disagreement is therefore much weaker than a properly documented one.

When can a director become jointly liable for Romanian tax debts?

Article 25 of Romanian Fiscal Procedure Code no. 207/2015 creates specific joint-liability routes for overdue tax obligations. They are not triggered merely by holding office. The relevant provisions require the statutory circumstances and, for the principal director-related routes, bad faith.

Potential cases include administrators or other persons who, in bad faith:

  • caused the debtor’s insolvency by transferring or concealing its assets;
  • failed during their mandate to request the opening of insolvency proceedings for tax obligations from that period that remained unpaid when insolvency was declared;
  • caused the non-declaration or non-payment at maturity of tax obligations;
  • caused an unjustified tax refund or reimbursement; or
  • caused tax debts to accumulate and prevented their payment in the circumstances covered by Article 25(21).

A tax assessment against the company and a decision establishing the director’s joint liability are different acts. The facts, legal basis, procedural steps and challenge deadlines should be reviewed immediately when a director receives a Romanian tax notice.

Can delegation, resignation or shareholder instructions remove liability?

Delegation

Delegating finance, tax or operations does not necessarily eliminate a director’s own supervision duties. The appropriate level of oversight depends on the company form, governance structure, importance of the function, warning signs and the director’s legal powers. A clear written delegation and regular reporting are stronger than an informal assumption that “the accountant handles it.”

Resignation

Resignation can end future management authority once effective and properly implemented, but it does not erase possible liability for earlier acts or omissions. The director should document the handover, return company property, preserve relevant records and ensure required Trade Register formalities are handled.

Shareholder or parent-company instructions

A shareholder instruction does not automatically legalise conduct that breaches mandatory law or the director’s duties to the Romanian company. Material instructions should be checked against reserved matters, representation rules, corporate benefit, conflicts and insolvency considerations.

Directors’ and officers’ insurance

D&O insurance may fund defence costs or certain covered claims, but wording, exclusions, notification duties, deductibles and Romanian mandatory law matter. It cannot be assumed to cover fraud, intentional misconduct, all tax exposure, fines or every insolvency claim.

Practical checklist for foreign directors of Romanian companies

  1. Verify the mandate. Obtain the current articles of association, appointment decision and Trade Register extract.
  2. Map authority. Distinguish individual representation, joint signatures, shareholder reserved matters and internal approval thresholds.
  3. Build a reporting pack. Receive timely cash-flow, tax, accounting, litigation, employment and regulatory information.
  4. Document material decisions. Record information reviewed, options, conflicts, rationale, vote and follow-up responsibility.
  5. Control related-party dealings. Disclose interests and obtain the approvals and supporting valuation appropriate to the transaction.
  6. Supervise filings and records. Use a compliance calendar and require evidence of submission and payment—not verbal confirmation alone.
  7. Escalate warnings. Investigate missed tax payments, unpaid salaries, creditor enforcement, deteriorating liquidity and missing records promptly.
  8. Record disagreement. Use the legally appropriate board record and written notification; do not rely on an informal objection.
  9. Assess distress early. Seek Romanian insolvency and tax advice before the statutory filing window is lost, allow for the 15-day advance tax-authority notification and scrutinise transfers to closely related persons.
  10. Plan the exit. Coordinate resignation, handover, registrations, access removal, record preservation and insurance notification.

The bottom line

Romanian company director liability is conduct-based, not an automatic consequence of a company debt. The strongest protection is disciplined governance: understand the mandate, obtain adequate information, act within authority and in the company’s interest, manage conflicts, preserve reliable records and respond quickly to tax or insolvency warning signs.

Foreign directors should not wait for a dispute to reconstruct the decision process. A focused Romanian-law governance review can identify gaps in signing authority, reserved matters, minutes, compliance reporting and distress procedures before they create personal exposure.

Frequently asked questions

Is an SRL administrator automatically liable for the company’s unpaid debts?

No. The SRL is normally the debtor. Personal liability requires a separate legal or contractual basis, such as breach of the administrator’s duties causing loss, Article 169 insolvency conduct, Article 25 bad-faith tax conduct or a personal guarantee.

Does being a shareholder change a director’s liability?

Shareholder and director exposure are separate. A person who holds both roles may face different claims in each capacity, but liability must be analysed under the legal basis applicable to that role and conduct.

Can shareholder approval protect a Romanian director?

Approval can be relevant, but it is not a universal defence. Its effect depends on the company form, authority of the approving body, quality of disclosure, mandatory law, third-party rights and the conduct involved.

Does resignation end a director’s potential liability?

Resignation can end future authority once effective, but it does not erase potential liability for earlier conduct. Proper handover, registration, preservation of records and insurance notification remain important.

What should a director do if they disagree with a board decision?

Obtain advice on the correct procedure, state the reasons clearly and ensure the opposition is recorded and notified in the form required by the applicable governance rules. This is particularly important for collegial bodies and insolvency-related decisions.

Can D&O insurance eliminate personal liability?

No. It may cover certain defence costs and claims, but policy terms, exclusions, notice requirements and mandatory law apply. Fraud, intentional conduct, fines, tax exposure and insolvency claims may be excluded or limited.

Disclaimer: This article provides general legal information and does not constitute legal, tax or insolvency advice. Director duties and liability depend on the company form, constitutional documents, appointment terms, decision-making process, actual conduct and the law applicable to the specific facts.

AI Notice: AI-assisted content, reviewed by a qualified Romanian lawyer.