Starting with July 12, 2018, Law no. 163/2018 which provides for the option of the interim or quarterly distribution of dividends through the inclusion in the interim financial statements as receivables to shareholders/associates.

Thus, economic operators who opt for dividend distribution on a quarterly basis will have the obligation to prepare the interim financial statements of the balance sheet and the profit and loss account, having the same structure as the annual financial statements. At the same time, an inventory of assets such as assets, debts and equity will be made.

Within 30 days from the approval of the quarterly financial statements by the general meeting of shareholders and associates, they shall be submitted to the territorial units of the Ministry of Public Finance.

The amount of the dividends distributed during the fiscal year must be evidenced through a separate accounting account, respectively the account 463 “Receivables representing dividends distributed during the financial year” = 456 “Shareholders / Shareholders’ Settlements”.

What do you need to know?

  • The quarterly distribution of earnings to shareholders/associates may be made optionally during the financial year within the net quarterly profit margin plus any retained earnings and withdrawn reserves available for this purpose less any retained losses and amounts deposited in reserves in accordance with statutory or statutory requirements, respectively on the interim financial statements approved by the general meeting of the shareholders or associates, on a case by case basis;
  • Dividends distributed and paid in excess during the financial year shall be reimbursed 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;
  • In the event that associates or shareholders do not make dividend repayments, following settlement in the annual financial statements, the associates or shareholders owe, after the 60-day term, penalty interest calculated according to art. 3 of the Government Ordinance no. 13/2011, approved by Law no. 43/2012, with the subsequent amendments, if no higher interest was established by the constitutive act or by the decision of the general meeting of the shareholders approving the financial statements of the concluded financial year.


Article created by Contabiz Expert Accounting