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Remuneration for state representatives in companies capped

October 30, 2019

Moldovan Government took a decision to limit the remuneration for state representatives in companies with state-owned shares.

The amount of remuneration to state representatives is determined at the general shareholders meeting. According to the latest amendments passed by Government the amount of payments to state representatives may not exceed 1 % of the annual net profit received by the company. Within this general limit each individual representative cannot receive more than double the average monthly salary established in that company.

Previously individual monthly remunerations were not capped, while the overall annual payments to state representatives could not exceed 5 % of company’s annual net profit.

State representatives are appointed in companies whose shares (fully or partly) are owned by the state to represent its interests. However, the relevant state authority should decide on the expediency of appointing a representative in companies in which the state owns shares up to 10 % of the share capital.

* To stay informed of the new legislation and latest legislative amendments you can find regular updates here.