Americanas: Government calls for urgency in project – 07/24/2023 – Panel SA

The Lula government filed in the Chamber of Deputies a request for urgency in the bill of the Ministry of Finance that shields minority shareholders from illicit acts committed by controllers of publicly-held companies.

The project, sent in the wake of investigations into the alleged fraud at Americanas, seeks to provide more protection to investors and ward off the risk of new crises of confidence in the capital market.

With the urgent request, the government wants to speed up the processing of the matter, which needs to go through the analysis of the deputies in 45 days at the risk of locking the agenda of the other votes.

The government’s objective is to act preventively, ensuring punishment and compensation mechanisms, in case new episodes of omission of information or fraud occur in the future.

The text increases the powers of the CVM (Securities and Exchange Commission) by allowing the autarchy to request the Judiciary to adopt search and seizure measures to assist in its investigations. Today, this is not possible.

It also creates mechanisms to provide more transparency to the arbitration processes used in the resolution of corporate disputes. Currently, they are confidential. With the project, the CVM will decide on the need for secrecy on a case-by-case basis.

With Diego Felix

PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.