Distributing the capital premium

Sebastian Bodu
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Sebastian Bodu: Romanian-American University

Social-Economic Debates, 2018, vol. 7, issue 2, 10-15

Abstract: Permission of distributing the capital premiums is equivocally in Law no. 31/1990, because such premiums are not part of the profit not of the legal capital (and the mandatory reserves). Of course there is temptation to distribute such premiums, but the law incriminates fictive profit distributions. If the concept of par value of the shares would not have been in place, and shares would be issued at the market value, all such value would be registered in one account, which means that the legal nature of the premiums is closer to the legal capital than to the profit.

Keywords: Issuance premiums; profit; loss; distribution; shareholders; reserves (search for similar items in EconPapers)
JEL-codes: G32 G33 (search for similar items in EconPapers)
Date: 2018
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