Government representatives in the shareholder meetings of the companies where the state holds stakes will be again mandated to vote for a 90% part of the respective companies’ profit to be distributed as dividends – a 90% payout ratio that has been recommended in the previous years as well.

In fact, the Government has already included in the 2023 budget planning a significant amount of revenues from this source: 0.6% of GDP (RON 9.7 bln or EUR 2 bln), based on the significant profits reported by the companies in the energy sector where the state is a shareholder, Profit.ro reported.

There are, however, companies excepted from this general rule, which are indicted under specific regulations.

Moreover, in thoroughly justified cases, the Government can approve, with the approval of the Ministry of Finance, by memorandum, the mandate of state representatives to decide on the distribution of a share of less than 90% of the net profit achieved in 2022 by state companies.

iulian@romania-insider.com

(Photo source: Dreamstime.com)