Classical city buildings behind the title “Dividend Distribution by a Romanian SRL: Approval Documents Before Payment”.

Dividend Distribution by a Romanian SRL: Approval Documents Before Payment

Corporate decisions · Romanian SRLs · Dividend payments

The owners have agreed that the Romanian company should pay a dividend.

Before the bank transfer, the company needs a decision supported by the right accounts, adopted by the right shareholders and aligned with the payment and tax record.

In brief: A profitable year or a positive bank balance does not, by itself, authorise a dividend payment by a Romanian limited liability company (SRL).

The accountant should confirm the distributable amount and accounting treatment, while legal counsel reviews the corporate approvals, constitutive documents and distribution mechanics.

The recipient-specific tax position requires its own assessment before payment.

A focused legal review can identify the missing approval or constraint before a payment is released.

This article is for founders, foreign parent companies, investors and directors preparing a specific SRL distribution.

It explains when legal support is useful and what the review covers, without offering a substitute for the company’s accounting and tax advice.

Can a Romanian SRL pay dividends once it has cash?

Cash is not the legal test.

A distribution needs profit determined according to law and an appropriate corporate decision, with losses, reserves and net assets checked against the current accounts.

Article 67 of Companies Law no. 31/1990 on the Romanian Legislative Portal provides that dividends may be distributed only from profit determined according to law.

The same article provides for annual distribution and, optionally, quarterly distribution based on interim financial statements, subject to annual reconciliation.

A bank statement therefore cannot answer whether the amount proposed for payment is distributable.

Liquidity matters to the business, but the legal distribution decision depends on the financial basis and a valid shareholder approval.

The director and accountant should distinguish accounting profit, cash available for operations and an amount that shareholders have lawfully approved for distribution.

A company may have collected a large customer invoice yet carry prior losses, required reserves or other constraints that change the distributable figure.

Conversely, an approved dividend may remain unpaid because cash is needed for working capital; the legal entitlement and payment planning are related but different questions.

The review should start with the latest approved accounts and the actual period from which the dividend is proposed to come.

Atrium’s corporate and commercial lawyers in Romania can review the company documents and proposed decision alongside the financial analysis supplied by the accountant.

Which documents should be reviewed before the dividend decision?

Start with the financial basis, the company’s current constitutional documents and a draft resolution that identifies the amount and recipients.

The exact pack depends on whether the proposed distribution is annual or interim, whether there is one shareholder or several, and whether any owner is abroad.

The financial statements establish the starting figures, while the company’s articles of association (constitutive act) determine whether the default allocation and voting arrangements have been changed.

Article 67 generally allocates dividends in proportion to paid-up capital participation unless the company’s articles of association provide otherwise.

For an annual decision, Article 194(1)(a) gives the SRL shareholders’ general meeting the task of approving the annual financial statements and determining the allocation of net profit.

A sole shareholder exercises those meeting powers and records the decision without delay in writing under Article 196¹.

Where there are several owners, the meeting, notice, representation and voting route must be checked against the law and current articles.

A foreign parent’s internal approval does not by itself replace the Romanian subsidiary’s decision.

Our guide to signing Romanian shareholder resolutions from abroad explains why the voting authority, decision record and signing method should be treated separately.

The bank instruction should then match the adopted resolution, recipient identities and payment schedule.

What decision is the company preparing?

Select the closest situation to see the first documents a focused review would compare.

Annual distribution review

Compare the approved annual financial statements, carried-forward losses, reserves, ownership record and draft profit-allocation resolution.

Confirm that the payment instruction reflects the amount and recipients actually approved.

Interim distribution review

Obtain the interim financial statements, proposed quarterly decision and record of any earlier interim dividends.

Plan the annual reconciliation and assess whether a later repayment of excess interim dividends could arise.

Foreign-parent payment review

Check the Romanian company’s decision and the foreign shareholder’s identity and signing authority.

Coordinate the recipient’s residence and any claimed treaty or domestic exemption with the tax adviser before determining withholding and payment mechanics.

The selector identifies review areas; it does not confirm that a distribution is lawful or tax-exempt.

What can prevent a profitable SRL from making the proposed distribution?

Prior losses, required reserves and net-asset deterioration can change the answer even when the current year shows profit.

These checks should be made before the shareholders approve a number, not after the bank transfer is scheduled.

Articles 69 and 69¹ of Companies Law no. 31/1990 address losses, reserves and restrictions on distributions where net assets have fallen.

Where a loss of net assets has been established, Article 69 requires the subscribed share capital to be restored or reduced before profit can be allocated or distributed.

Article 69¹ adds specific checks for carried-forward accounting losses and net-asset deterioration.

Its first paragraph conditions distribution from the current year’s profit where carried-forward accounting losses exist on legal reserves, coverage of those losses and reserves required by the constitutive act.

Where approved annual accounts show net assets below half the subscribed share capital, its second paragraph permits distribution from the current year’s profit only after net assets have been restored to the statutory minimum.

Its third paragraph applies a corresponding restriction to interim dividends on the basis of approved interim accounts.

These are distinct questions from whether the business can afford a transfer in the coming month.

The accountant should confirm the figures and applicable financial-statement treatment; counsel can test the proposed resolution and payment against the corporate restrictions.

If the SRL also owes money to a shareholder, the dividend and loan repayment should not be merged into one undefined “owner payment.”

Article 67(2³) restricts loans by companies distributing interim dividends until the annual differences are reconciled, while Article 67(2⁴) restricts repayment of certain shareholder or affiliate loans where approved annual accounts show net assets below the statutory threshold.

Article 67(2⁵)–(2⁶) also provides for liability and administrative sanctions in the circumstances specified by law, so a proposed owner payment should be reviewed against the current text.

Our guide to shareholder loans in Romania addresses the separate funding and repayment questions.

Does an interim dividend follow the same document route as an annual dividend?

No.

A quarterly distribution requires interim financial statements and later regularisation through the annual statements; it should not be treated as an informal advance against anticipated profit.

Article 28(8¹) of the Accounting Law no. 82/1991 requires interim financial statements where a company chooses quarterly dividend allocation.

Article 67(2¹) of the Companies Law requires the annual statements to show the dividends allocated during the year and to reconcile the resulting differences.

If reconciliation shows that shareholders received more than they were entitled to, Article 67(2²) requires repayment within 60 days after approval of the annual financial statements and provides for late-payment interest after that period.

The company should therefore know what it has already distributed in the same year, not review the latest quarter in isolation.

A later downturn, a corrected accounting entry or a financial-statement adjustment can make an apparently convenient interim payment more complicated.

Where an international group expects a recurring cash sweep, its treasury calendar should accommodate the Romanian accounting and approval process rather than assume every transfer can be labelled a dividend after the fact.

A targeted review can keep the interim decision, accounts, recipient schedule and later annual reconciliation in one coherent record.

How should the resolution describe the payment?

The decision should clearly identify the accounts and profit being allocated, the approved dividend amount, the beneficiaries and the intended payment terms.

It should match the articles, ownership record and accounting treatment.

A generic instruction that “profit will be paid to the parent” can leave material questions unanswered.

Which financial year or interim period is involved, which amount is distributed and what portion remains in the company?

Who held the relevant participation, and does the articles-of-association allocation rule differ from the statutory default?

Has the sole shareholder decided in writing, or did a multi-shareholder SRL adopt a valid meeting decision?

The answers can matter where a shareholder has recently joined or exited, ownership is disputed or a minority investor has negotiated consent rights.

A separate shareholder deadlock review may be needed if a distribution cannot obtain the necessary vote.

Do not assume that a private shareholder agreement changes the company’s articles or cures an incorrectly adopted resolution.

When the owner is a foreign company, confirm who may represent it and what authority evidence is available before circulating the decision for signature.

Atrium can prepare or review the proposed decision and identify any linked corporate action, while the accountant confirms the underlying profit and accounting entries.

What needs to be checked before the bank pays a foreign shareholder?

The Romanian approval and the recipient’s tax treatment should be checked as separate workstreams that meet at payment.

A foreign address or EU incorporation alone does not establish a withholding exemption.

The company should identify the legal recipient, current participation, payment account and documentation supporting any proposed treaty or domestic-law treatment.

The Romanian Fiscal Code on the official Legislative Portal contains different dividend rules depending on the recipient and any conditions for relief.

The applicable tax position may depend on residence, shareholding history, beneficial ownership, supporting certificates, distribution date and payment date.

For a cross-border payment, the tax adviser should verify any applicable double-tax treaty and whether domestic relief implementing the EU Parent–Subsidiary Directive is available.

Tax treatment can change with legislation and should be confirmed for the specific distribution and payment dates.

Where treaty or EU relief is claimed, the foreign recipient’s tax-residence certificate and other supporting evidence should be assessed before payment.

A tax adviser should confirm the withholding, declaration and payment obligations for the actual recipient rather than assume that the domestic headline rate is the amount due in every case.

That analysis should be completed before the net payment is calculated and the bank instruction issued.

For a group that recently acquired its Romanian company, the ownership documents and the dividend resolution should tell the same story.

Our guide to changing shareholders in a Romanian company discusses the separate registration and ownership record.

What if a distribution has already been approved or paid incorrectly?

Preserve the resolution, accounts and payment trail, then assess the actual defect before adopting a corrective step.

A new resolution, accounting correction, repayment or tax amendment may address different problems and should not be treated as interchangeable.

Article 67(4) of the Companies Law deals with repayment of dividends paid contrary to specified distribution rules where the company proves that the recipients knew or should have known of the irregularity.

Article 67(5) states a three-year limitation period from distribution for the restitution action concerning dividends paid contrary to paragraphs (2) and (3); other claims require their own timing analysis.

The separate annual reconciliation mechanism for interim dividends may also create a repayment obligation.

These rules do not imply that every documentary error makes every dividend automatically repayable on identical terms.

There may also be governance, creditor, insolvency or tax consequences depending on the company’s condition and the payment history.

If the issue is discovered before transfer, pause the payment instruction while the relevant legal, accounting and tax questions are resolved.

If payment has occurred, establish the date, amount, recipient and accounting entry before altering the company record.

The same care matters when one owner received money described as a loan repayment, management fee or advance while another expected a dividend.

Labels cannot substitute for the legal basis of each payment.

What can Atrium review before your SRL pays?

A focused instruction can produce a clear answer on the corporate approval, an improved resolution and a list of issues for the accountant or tax adviser before the transfer.

The scope depends on the company, ownership structure and documents already available.

For a straightforward sole-shareholder annual distribution, the work may focus on the approved accounts, written decision, signatory authority and payment wording.

For several shareholders, the review may include notice, majority, unequal allocation provisions, reserved matters or an existing dispute.

For an interim distribution, the company may need its prior payment history and a reconciliation plan considered alongside the interim accounts.

For a foreign parent, we can coordinate Romanian corporate documentation with the tax and banking questions identified by the relevant advisers.

We do not present a legal review as an audit of the accounts or a guarantee that a particular dividend can be paid.

Send the current articles, shareholder details, latest approved annual statements, any interim statements, proposed amount, draft decision and intended recipients.

If prior losses, owner loans or earlier interim dividends exist, include that history at the outset.

The firm can then define a proportionate scope and fee for the decision in front of you.

Request a Romanian dividend decision review

Frequently asked questions

Can the sole shareholder approve a dividend without a meeting?

Yes, the sole shareholder exercises the general meeting’s powers and must record the decision without delay in writing under Article 196¹ of Companies Law no. 31/1990.

The financial basis and distribution restrictions still apply.

A foreign corporate shareholder must also act through an appropriately authorised representative.

Can an SRL distribute dividends every quarter?

Romanian law permits optional quarterly distributions based on interim financial statements, followed by reconciliation in the annual statements.

Before approving an interim amount, check prior distributions, losses and the relevant net-asset position.

The accountant should confirm the accounts and any required reporting for the specific period.

Is an available bank balance enough to approve the payment?

No.

Cash availability does not establish distributable profit or replace the accounts and shareholder decision.

Prior losses, reserves and the statutory net-asset rules can affect the amount available even when cash is present.

Can dividends be paid if prior-year losses exist?

Not automatically.

Current company law requires the relevant carried-forward accounting loss and reserve position to be addressed before distributing profit from the current year.

The accountant should confirm the financial figures, and counsel should review the proposed distribution against Article 69¹ and the company’s constitutive act.

Does a foreign parent automatically receive dividends without Romanian withholding tax?

No.

The recipient’s tax status and any exemption or treaty relief must be checked against the applicable conditions and supporting documents.

The Romanian company’s corporate approval and the tax position should be aligned before the net amount is paid.

What if the SRL also owes its owner a shareholder loan?

A loan repayment and a dividend have distinct legal bases and restrictions.

Review the loan agreement, approved accounts, net assets and any interim-dividend history before selecting the payment route.

Do not use a dividend resolution as a generic authority for repaying debt.

Related corporate guidance

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Illustration of three business professionals discussing company funding around a table.

Shareholder Loans in Romania: Legal Requirements and Tax Considerations

Corporate finance · Shareholder funding · Romania

Funding a Romanian company through a shareholder loan requires clear terms for the money going in and a lawful route for repayment.

A focused legal review can turn the proposed funding arrangement into an agreement, the necessary corporate documents and a clear list of tax and reporting questions.

This guide concerns money lent by a shareholder to a Romanian company, including funding from a foreign parent company.

Loans made by the company to its shareholders involve different restrictions and require a separate assessment.

The discussion focuses on ordinary company funding rather than professional lending, cash pooling or regulated financial services.

What can a shareholder-loan lawyer help you prepare?

The legal work should match the funding decision you need to make.

For a new loan, the scope may include drafting or reviewing the agreement, checking representation and identifying any necessary approvals.

For an existing balance, the starting point is the signed record, actual transfers, amendments and accounting reconciliation.

For repayment, the review should address contractual maturity, current legal restrictions and the proposed payment.

Depending on the agreed mandate, the deliverables may be a revised agreement, replacement clauses, supporting resolutions or a written issues list for management and the accountant.

Our corporate legal support for Romanian companies covers governance and transaction documentation alongside the funding contract.

Select the cards that match your transaction to add the relevant areas to the review packet below.

Should the funding be a loan or a capital contribution?

Choose the legal structure around the intended funding and repayment.

Under Article 2158 of the Romanian Civil Code published on the courts portal, a money loan involves an obligation to return the amount lent.

A capital contribution serves a different corporate function and should not be treated as an interchangeable payment label.

Record whether the shareholder expects repayment, when the company could repay and whether permanent capital is needed.

Ask the accountant to explain how the proposed transaction affects liabilities, equity and the company’s financial position.

A further loan does not, by itself, repair a net-asset deficit merely because cash enters the bank account.

Where the funding is part of incorporation, our guide to starting a Romanian SRL explains the separate share-capital framework.

What should the shareholder-loan agreement contain?

The contract should explain the funding, its cost and how the debt will be managed.

Article 15 of Companies Law no. 31/1990 on Romania’s official legislation portal requires contracts between an SRL and its sole shareholder to be in writing, under penalty of absolute nullity.

That specific rule applies whether the sole shareholder is an individual or a legal entity.

Article 15 requires written form rather than imposing a general notarisation requirement, while security and other transaction formalities need separate assessment.

A written agreement is also the practical starting point for reviewing other shareholder-funding arrangements.

  • Parties and capacity: identify the actual lender, Romanian borrower and authorised signatories.
  • Funding: define the amount or facility limit, currency, purpose, drawdown conditions and transfer account.
  • Interest: state whether interest applies and address calculation, payment dates and default interest separately.
  • Repayment: specify maturity, instalments, early repayment, extension and treatment of legally restricted payments.
  • Protection: review any security, subordination, existing bank covenants and restrictions on other funding.
  • Administration: address amendments, assignment, notices, governing law, disputes and any bilingual versions.

This is a drafting checklist rather than a statement that every listed clause is mandatory in every loan.

Our Romanian contract-review guide provides wider context on authority, payment and dispute clauses.

If the same person proposes to sign for both parties, assess representation and conflicts before execution.

Check the company’s articles of incorporation and corporate governance provisions, registered representation powers and applicable decision-making rules to determine which approvals are needed.

Our guide to Romanian company directors’ duties and liability explains why authority, corporate decisions and financial distress need separate attention.

Can the loan be interest-free?

The agreement should state the intended interest treatment expressly.

Article 2159(2) of the Civil Code presumes a money loan to be for consideration unless the contrary is established.

Silence should therefore not be treated as a reliable interest-free clause.

Under Article 2 of the official text of Government Ordinance no. 13/2011 on interest, the statutory rate applies where interest is due by law or contract but its rate is unspecified.

Article 6 requires agreed interest to be recorded in writing and limits recovery to statutory interest in the absence of that written stipulation.

Distinguish an expressly agreed interest-free loan from an agreement that leaves the rate unspecified.

Assess interest for using the funds separately from interest arising on late repayment.

Article 5’s interest ceiling applies only to legal relationships that do not arise from the operation of a profit-making enterprise.

It should not be treated as a general cap on shareholder-loan interest.

Assess the nature of the financing relationship rather than the lender’s individual or corporate status alone.

Where that restricted rule applies, the agreed annual rate is capped at 1.5 times the statutory rate in force when the interest clause is agreed.

A clause breaching that ceiling is void, and the creditor also forfeits the right to claim statutory interest.

Tax treatment requires a separate assessment even where the contractual intention is clear.

Interest-free intercompany loans may raise transfer-pricing issues where the lender and borrower are affiliated parties.

Which tax questions should be resolved?

Review the actual parties and tax regime rather than applying one assumed tax result.

Transfer pricing

The ANAF transfer-pricing guide explains the arm’s-length principle for related-party transactions.

For affiliated parties, assess whether the financing terms and supporting evidence meet that principle.

The assessment is not limited to the interest rate and may extend to the commercial rationale and other terms of the financing.

Deductibility of borrowing costs

For corporate-income-tax purposes, Article 40² of the Romanian Fiscal Code consolidated by ANAF regulates the deductibility of exceeding borrowing costs.

Signing a valid loan agreement does not establish that every interest expense is deductible.

Tax on interest payments

Before paying interest, determine the lender’s residence and status, any withholding obligations, available relief and reporting duties.

ANAF’s official tax forms and explanations include documents relevant to residence and qualifying EU interest-payment exemptions.

Do not assume that a foreign parent or EU shareholder automatically qualifies for an exemption.

Agree who obtains the evidence, confirms the treatment and handles any withholding or returns.

Shareholder-loan review-file builder

Your transaction

No areas selected

Tick the areas that apply, then select “Copy review packet” to copy the document list and questions.

Your review packet

Start with the core record; selections add focused items.

Documents to collect
  • The company and lender identities, ownership relationship and proposed transaction.
  • The amount, currency, purpose, intended timing and current funding balance.
Questions for review
  • Are you arranging funding, changing terms, documenting a balance or preparing repayment?

This tool generates the review packet locally and contains no submission function.

It does not determine tax treatment, calculate deadlines or approve funding or repayment.

What changes when the shareholder is abroad?

Identify the foreign lender and assess the particular cross-border transaction.

Obtain the corporate lender’s identity and authority documents, complete agreement and proposed payment schedule.

BNR Regulation no. 4/2021 on reporting statistical data and information to the National Bank of Romania, as subsequently amended, including by BNR Regulation no. 3/2025, contains specific external-debt reporting duties.

Assess the lender’s and borrower’s residence under the regulation, together with maturity and transaction structure, rather than nationality alone.

Articles 82–83 cover qualifying private external debt, including financial loans exceeding one year from non-residents and indefinite-term debt treated as long-term.

Article 83(1) requires relevant resident borrowers to submit F1 and F2 within 30 calendar days of concluding the contract, rather than the first drawdown.

Specified identification or contract changes require F1 within 15 calendar days under Article 83(2).

Under Article 83(3¹), changes to funding, principal, interest or fee schedules require an updated F2 within 15 calendar days of the change.

Article 84 requires borrowers selected by BNR to submit F3 within 15 calendar days after the reference month ends, except months without operations.

F3 is not a universal monthly filing for every borrower, and statistical reporting is distinct from prior loan authorisation.

Foreign governing law does not remove the need to assess Romanian corporate, tax and reporting requirements.

Can the company repay the shareholder whenever cash is available?

No, available cash and contractual maturity do not settle every repayment condition.

Article 67(2⁴) of Companies Law no. 31/1990 prohibits repayment of loans from shareholders or accounting-defined affiliates where annual financial statements approved according to law show net assets below half the subscribed share capital.

Net assets are different from the company’s bank balance.

The prohibition took effect on 18 December 2025, as shown in ANAF’s comparison of the Companies Law amendments.

ANAF’s statement of 13 May 2026 announces checks on repayments made after approval of annual financial statements with filing deadlines in 2026.

The prudent approach is not to treat that enforcement statement as postponing the statutory commencement.

Assess the relevant approved accounts and the law in force on the proposed or historical repayment date.

Article 67(2⁶) provides for a fine of RON 10,000–200,000, without the option to pay half the minimum fine under Article XXV of Law no. 239/2025.

A breach may result in the company and recipient shareholder being held jointly and severally liable, under Article 67(2⁵), for the company’s outstanding budgetary liabilities administered by the central tax authority, up to the amount of the prohibited loan repayment.

For loan receipts and repayments between a company within Article 1(1) and an individual, Article 4(4) of Law no. 70/2015 on cash-payment discipline requires non-cash payment instruments.

Check the law’s scope and any specific statutory exemption before relying on a different payment route.

Where the company faces financial distress, obtain a separate assessment before repayment, security enforcement or restructuring.

When can a shareholder loan require conversion into capital?

The conversion mechanism has its own conditions and does not apply automatically to every shareholder loan.

Where dissolution is not decided, Article 153²⁴(4) of Companies Law no. 31/1990 requires capital reduction by at least the losses not covered from reserves if net assets have not been restored to at least half the share capital within the statutory period.

That period ends at the close of the financial year following the year in which losses were established, subject to Article 10.

For companies falling within Article 153²⁴(1) that have outstanding shareholder loans or other shareholder financing, paragraph (4²) provides for a capital increase through conversion of those claims where the obligation under paragraph (4) has not been complied with within the statutory two-year period, calculated from the end of the financial year following the year in which losses were established.

Assess the applicable deadline against the company’s financial year, the relevant approved annual financial statements and any applicable transitional provisions.

The procedure must respect other shareholders’ rights, and paragraph (4⁴) extends the relevant rules to SRLs.

Paragraphs (4⁹) and (4¹⁰) contain specific exceptions, including categories subject to a four-year non-repayment condition.

Check the precise investor or funding category rather than assuming that every parent company qualifies.

Failure to restore net assets can attract a RON 10,000–200,000 fine, while failure to comply with the conversion obligation can attract RON 40,000–300,000 under paragraphs (4¹) and (4³).

Article XXV of Law no. 239/2025 also excludes the half-minimum fine payment option for these breaches.

Under paragraph (4⁵), ANAF’s ascertainment and penalties for those obligations start in 2027, relating to annual accounts for financial years beginning on or after 1 January 2025.

This timetable does not defer the separate repayment prohibition in Article 67(2⁴), and a conversion exception does not automatically permit repayment.

Transaction review

Shareholder-loan decision map

Select a situation to see the first review action.

Select a button in the first column, then read the action panel beneath the table.

On a small screen, scroll the table sideways to read every column.

Match the review to the transaction
SituationReview firstPoint to resolve
Terms, parties and authorityWhich documents and approvals fit the proposed funding?
Transfers, agreement and ledgerWhat was actually agreed and what evidence is missing?
Lender status, term and residenceWhich tax and statistical reporting rules apply?
Current maturity and proposed changesWhat must be amended, approved or reported?
Debt balance and financial positionIs the proposed action lawful and properly documented?
First review action Set the funding terms and document route

Confirm the lender, borrower, proposed terms and authority before settling the agreement and supporting documents.

What if the money has already been transferred?

Reconstruct the existing arrangement before proposing corrective documents.

Collect payment records, correspondence, signed agreements and the accountant’s reconciliation of principal and interest.

A ledger entry or payment reference alone may not resolve all questions about the agreement and its terms.

Identify what was agreed, when funds moved and whether any reporting or payment obligations were missed.

Use the actual dates and obtain advice on appropriate confirmation or amendment documents.

Do not backdate signatures or assume a new document automatically cures an earlier validity problem.

Request drafting or review of a shareholder loan

Atrium Romanian Lawyers assists with Romanian corporate documents and contract drafting, review and negotiation.

For a shareholder-loan matter, the proposed scope can cover the agreement, representation, necessary approvals, repayment restrictions and coordination of tax questions with your accountant or tax adviser.

To request a review, describe whether you need a new agreement, an amendment, a review of earlier transfers or advice before repayment.

Include the parties’ countries, proposed amount and currency, timing, interest terms and whether funds have already moved.

For repayment, indicate whether approved financial statements show a net-asset issue.

The scope and fee should be agreed after the documents and required work are identified.

Related guides

Select a guide for the related document or corporate decision you need to review.

Frequently asked questions

Select a question to open its answer, and select it again to close it.

Can you review a loan agreement prepared by the foreign parent?

Yes, the proposed review can address the draft and its Romanian corporate implications, with identified tax and reporting questions referred for the appropriate assessment.

Send the complete agreement, annexes, parties’ details and intended funding or repayment timetable.

Is a shareholder resolution required for every loan?

The required approval and signature route depends on the company’s structure, constitutional documents, representation powers and applicable rules.

The review should identify the necessary decisions rather than assume one universal resolution template.

Is a loan from a shareholder automatically interest-free?

No, a money loan is presumed to be for consideration unless the contrary is established.

State any intended interest-free treatment expressly and assess the separate tax implications.

Can a repayment date override the net-asset restriction?

Do not assume that contractual maturity permits payment despite a statutory restriction.

Review the applicable accounts, outstanding balance and proposed payment before authorising repayment.

Can an existing shareholder loan be converted into capital?

Conversion requires assessment of the claim, corporate procedure, shareholder rights and any applicable statutory obligation or exception.

A private agreement to convert does not by itself complete the corporate steps.

What determines the cost of a shareholder-loan review?

The scope depends on whether the work involves drafting, redlining, missing historical records, foreign parties, security or repayment restrictions.

The documents and expected deliverables should be identified before the fee and mandate are agreed.