Provisional Measure Responsible For Changing Operating Rules Of Companies And Aspects Of The Brazilian Business Environment Is Referred To The National Congress

• Published date: 07 April 2021
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law
• Law Firm: Koury Lopes Advogados
• Author: Koury Lopes Advogados

The Provisional Measure No. 1,040 ("Provisional Measure") was published in the Federal Official Gazette on March 30, 2021 with the purpose to reduce bureaucracy in the Brazilian business environment, changing several aspects relevant to the operation of companies in the country. Among them, the following stand out:

• Expansion of the competence of companies' general meetings;
• Extension of the deadline for the first call of general meetings in publicly-held companies, which must of 30 days in advance (the deadline before was 15 days);
• Prohibition of cumulation of positions of chairman of the board of directors and chief executive officer of publicly-held companies;
• Obligation to have the participation of independent directors in the board of publicly-held companies;
• Unification of tax registrations at the federal, state and municipal levels;
• Creation of electronic system for prior research of address and corporate name viability;
• Use, at the state and municipal levels, of the national risk classification of business activities making it possible to issue a business license and other licenses automatically in the case of companies classified as medium grade in accordance to the aforementioned classification;
• Release of notarization in powers of attorney used in the filing process of acts before commercial boards;
• Reducing bureaucracy in the conduct of foreign trade, through the prohibition of several requirements previously demanded by the government and the institution of a single electronic window for sharing data and documents between exporters and importers;
• Creation of the Integrated Asset Recovery System ("Sira"), which will operate...