Corporate acts published in newspapers are in the past
As of October 14, companies (whether publicly-held or not) will be exempt from publishing in the Official Journals and newspapers This exemption was established by Decree No. 529, from the Ministry of Economy and CVM Resolution No. 829, both published at the end of September, which represents a significant reduction in compliance costs of the companies.
The regulation was expected since August, after the Provisional Measure No. 892 allowed the companies to make their publications on their websites.
The publications will follow the following procedures:
It is important to note that the Ministry of Economy (responsible for determining the publication of the closely-held companies after the Provisional Measure No. 892) did not clarify if the closely-held companies shall necessarily have their own website or if they could post their publications on third-parties’ platforms.
This detail is important, as a significant number of companies currently do not have a website (eg. holding companies) and a possible obligation that every company shall have one, would be an unnecessary cost to the companies, something that the new regulation seems to want to avoid.
By Mateus Leite, associate at Candido Martins Advogados
[email protected]