Draft law in Romania: No jail for managers who misuse the company’s money

A draft law initiated by 34 MPs of the Social Democratic Party (PSD) aims to amend several existing laws and remove the prison sentence for company managers that favor other firms, use their company’s money in bad faith, or borrow from the company more than the threshold of EUR 5,000 allowed by the law. The draft law also allows quarterly dividend distributions, and not only after the approval of the annual financial situations, like now, reports local News.ro. The measure would help the Government get dividends from the state companies faster, increasing the budget collection. The draft bill was submitted to the Senate last week. According to tax consultants consulted by News.ro, the removal of these provisions would favor the managers of state-owned companies, who would escape liability if these offences were decriminalized. editor@romania-insider.com