PROVISIONAL MEASURE ENDS THE REQUIREMENT FOR PUBLICATION IN PRINTED NEWSPAPERS
On August 6, 2019, Provisional Measure No. 892 was published by the Presidency of the Republic amending Brazilian Corporation Law (Law No. 6.404/1976) and Law No. 13.043/2014 with respect to mandatory publication requirements for corporations (sociedades anônimas) (“MP 892”).
MP 892 ended the requirement that corporations print their publications, requiring only publication (for publicly-traded company companies) on the websites for the Securities and Exchange Commission of Brazil (“CVM”) and the stock exchange. The release of the new publication rules applicable to closed-capital corporations, in turn, will depend on an act of the Ministry of Economy.
In order to ensure the accuracy of the published information, MP 892 also established that the publications should be authenticated by a certified authority accredited by the Brazilian Public Key Infrastructure (“ICP-Brasil”).
MP 892 is in line with the government’s policy to eliminate bureaucratic barriers to economic activity, particularly in relation to publicly traded and closed corporations that have greater mechanisms for capitalization and exercises of economic freedom, and until the MP 892, were subject to high maintenance costs which, in turn, discouraged these types of corporation.
Despite the above-mentioned, it is important to note that there are understandable doubts on this provisional measure’s convertibility into law, since (a) it renders innocuous Law No. 13,818/2019, recently enacted, which also amends the publishing rules for corporations, and (b) significantly affects the business-economic publishing market.
The Corporate Department of Kestener, Granja & Vieira Advogados is available to provide any further information required on this subject.
Fabio Alonso Vieira
Phone.: +55 11 3149-6111
fabio.vieira@kgvlaw.com.br
This article is intended exclusively to provide information and does not contain any opinion, recommendation or legal advice from KGV Advogados in relation to the matters herein addressed. Copyrights are reserved to Kestener, Granja & Vieira Advogados.
