Brazil’s securities commission to regulate digital shareholders meetings

The Brazilian Securities and Exchange Commission (CVM) started a series of public hearings to regulate fully-digital shareholders meetings due to Covid-19, aiming to have a decision by April 20, right before the meetings are set to kick off. The decision comes after the government issued Provisional Decree 931, which gave companies an extra three months to hold their general shareholders meetings related to the fiscal year just ended. In March, investors had already called for new dates for both meetings and earnings reports to be released.

“The securities authority wants to make sure that shareholders meetings held only on digital platforms are fully compliant with corporate law and allow shareholders the same chances to participate as they would have in an in-person meeting,” said CVM board member Gustavo Gonzalez, in a statement.

Among the proposed regulations that will be debated until April 13 is a requirement for companies to inform where the event will take place, if it is not at its headquarters. If they choose to run it as a digital event, they must inform how shareholders will be able to take part and vote, as well as informing whether the event will be fully or partially digital. Moreover, the electronic voting system must ensure the chance to give statements, to view documents, as well as the veracity and safety of communications.

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