Published in August 6, 2019, the Provisional Measure No. 892 (“MP 892/2019) aims to change rules of the Brazilian Corporations’ Law about the publishing of documents of the Brazilian corporations.

Pursuant to the content of the MP 892/2019, the publishing of the documents of the publicly-held corporations shall be done at the website of the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM) and at the website of the managing entity of the market where the corporation’s securities are admitted to trade – for Brazilian publicly-held companies, the Brazilian stock exchange B3. The documents shall receive the accredited digital signature and with the suppressing of the obligation to publish the documents at the Official Gazette and in another newspaper.

MP 892/2019 also stipulated the procedure for the publishing of the documents of the For the closely-held corporations, to be regulated by an act of the Minister of the Economy. The obligation to publish the documents at the Official Gazette and in another newspaper shall also be suppressed.

MP 892/2019 has also determined that the publishing of the documents for both publicly-held and closely-held corporations shall not represent any costs

MP 892/2019 entered into force with its publication. The effects shall commence at the First day of the following month after the publication of the acts of CVM and of the Minister of the Economy.

We will pay close attention to the publication of the regulating acts of CVM and of the Minister of the Economy to understand how the new procedures will work.

We believe that the measure is health, in view it eliminates cost for a Corporation to publish its documents and, as such, should be an encouragement for the officers and shareholders of a corporation to accomplish the legal obligation of publishing the corporation’s acts.

A Brazilian Corporation is obliged by law to publish its balance sheet and the financial obligations, calls of the shareholders’ general meetings, the minutes of the general meetings and the minutes of the board meetings (when generating effects to third parties). To accomplish the publishing of the documents, the corporations incur is costs and, in view the lack of specific sanctions for not publishing, many of the corporations does not accomplish with all the publishing.

Therefore, with the exclusion of the costs, it is expected that the corporations to accomplish with the obligation to publish its acts.