CVM Want to change applicable rules in shareholder assemblies

The Securities Commission (CVM) is committed to improving the rules governing shareholders in Brazil. Recently, the CVM has started a public consultation to gather contributions and suggestions from market agents to improve the mechanisms of distance learning and vote in the assemblies. In this article, we will discuss the main proposed changes and their potential impact on the Brazilian capital market.

One of the main changes proposed is the expansion of the hypotheses in which companies are required to publicize the distance voting report. This means that in general or special, ordinary or extraordinary shareholder assemblies, shareholders will have the opportunity to vote in a more comprehensive distance. This measure aims to make the voting process more accessible and democratic, allowing a larger number of shareholders to participate, regardless of their geographical location.

Another proposal is the possibility of holding assemblies in physical places that facilitate real -time shareholder participation in events. This means that companies will be able to offer meeting places where shareholders can participate in the assemblies, even though they are physically distant. The CVM also proposes to improve the distance voting report, incorporating the experience gained in recent years. This means that the distance voting process will become more efficient and effective, facilitating shareholders' participation and the registration of their votes more accurately.

Another relevant change is the inclusion of cases in which companies may be exempt from the obligation to make the voting report available. This aims to reduce the cost of observance for companies in cases where investors do not benefit from the mechanism. This flexibility can encourage companies' participation in shareholder assemblies.

Finally, the CVM proposes adjustments to the transmission flow of voting instructions, aiming to optimize the use of the deadline for collection, processing and counting of votes by regulated entities involved in the process. This measure has the potential to make the voting process more efficient and transparent.

CVM public consultation on the proposed changes in CVM Resolution 81 promises to significantly improve the voting mechanisms and distance participation in shareholder assemblies. With the expansion of the hypotheses of dissemination of the distance voting report, innovation in the form of real-time participation and the improvement of the process, it is expected that shareholders' participation will be more effective and democratic. These changes have the potential to strengthen the Brazilian capital market and ensure that all shareholders' voices are heard. The deadline for contributions runs until November 24, and all interested parties are encouraged to participate in this important CVM initiative.