Company shares instead of payment in exchange for services- is it recommended when one is doing business in Romania

By: Eli Doron, Adv; Yaron Tikotzky, Adv, (C.P.A); Dr.Slomo Nass, Adv, (C.P.A)

1/1/1900

A foreign business men arrived to Romania and was offered a "once of a life time deal"- instead of money the company will pay him with shares of another company that the company holds in part.

Should he accept this offer?
In many countries this kind of transactions is more then acceptable but every country has its own corporate law and one must be careful and check the local law before agreeing to offers that are considered to be "normal" in his home lend.

For example without careful checking one might have not know that this is a case that refers to a "limited liability company", for that reason one might not know that the Romanian law requires the consent of all shareholders to this deal.

Another important requirement is that the consent must be in writing.