On 6 November 2019, BRZ CVM extended comment period on lawsuits, until Dec. 12, 2019.
- The 10 October 2019, Consultation launched on the minimum percentages of shares needed to have lawsuits.
- Draft initiative seeks to adopt the reduction, provided for under art 291 law 6.404/76.
Shareholding for Lawsuits
- Draft instruction establishes scale reducing, in function of capital stock, the minimum percentages of shareholding necessary for filing of action against the administrators.
- As per §4 of art 159 of law 6.404/76, filing of liability action against parent company provided for in § 1.a of art 246 of law 6.404/76, without provision of security.
- Draft is result of suggestions from working group established by joint order MF/CVM 92/2018, to study, propose measures to improve protection mechanisms for investors.
- Also minority shareholders, together with ministry of economy, municipality continues to work on the matter, so new initiatives can be presented over time.
- Proposal to divide companies into 5 categories, according to value of capital stock.
- E.g. R$ 0 to 100,000,000 5%, R$ 5,000,000,001 to 10,000,000,000 2% needed, etc.
- Consultation allows comment on desirability of extending rule to percentages provided in art 291 as well as desirability of reviewing scales in BRZ CVM instructions 165, 324.