Provisional Measure Changes Publication Rules For Publicly Held And Privately Held Corporations
Corporate Law
In line with several measures aiming at reducing bureaucratic costs for Brazilian companies, the Federal Government issued, on August 5, the Provisional Measure (MP) No. 892, exempting Brazilian publicly held companies from publishing their legal documents in major newspapers, as set forth in the Brazilian Corporate Law (Law No. 6,404/1976).
As per the MP, such publications can only be made on the websites of these companies, as well as on the website of the Brazilian Securities and Exchange Commission (CVM) and on the website of the Brazilian stock exchange, B3. For privately held corporations, which shares are not publicly traded, the publication and disclosure of the corporate documents will be regulated by an act of the Ministry of Economy, which was not published yet.
Such rule, even though still provisional, brings at least two significant impacts: (a) it reduces...
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