Brazil’s law of corporations on the verge of change
When the new government reached the 100-day mark in April, the Finance Ministry announced a series of measures aimed at improving access to credit for companies, investors, and individuals. Many, however, were regulatory in nature and did not have an immediate effect.
- Now one of them, the biggest attempt in many years to overhaul the country’s law of corporations, is about to get underway.
State of play. Last Friday, the Finance Ministry, backed by Brazil’s Securities and Exchange Commission (CVM), sent a proposal to the lower house of Congress to reform the legislation.
Context. The last attempt to reform the law came in 2017 when Brazil formally declared its interest in joining the Organization for Economic Cooperation and Development (OECD).
- At that time, the CVM made administrative changes that lowered the minimum shareholding requirements for filing lawsuits and exercising related rights, and required public companies to...
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