Wednesday October 19 2016

News Source: Global Exchanges

Focus: Stock Exchange Corporate Governance

Type: General




In April 2015, CVM enacted Instruction 561 which establishes distance voting ballots to allow a larger number of shareholders to take part in public companies’ general meetings.

This mechanism allows shareholders to vote by email or post, via a custody agent or registrar, or directly through the company in which it is a shareholder, as authorised by Law 12.431/2011  which instituted distance voting at general meetings, updating  Law 6.404/76that governs public companies (Lei das S.As.).

The Instruction determines that companies shall provide ballots for Annual General Meetings and Extraordinary General Meetings whenever there is an election of members of the Board of Directors or Supervisory Board.

In 2017, companies that will be part of the Ibovespa and IBrX-100 indices as of April 07, 2015 will be required to provide distance voting to their shareholders.

In 2018, all public companies will be under obligation to adopt distance voting ballots.

Click on the link above for further details