_Brazilian Securities and Exchange Commission (CVM) punishes members of the Board of Directors for an irregular capital increase
In a recent decision, CVM punished members of the Board of Directors of a publicly-held corporation due to irregularities regarding a capital increase that was approved in 2008.
The members of the Board of Directors approved the purchase of assets from their controlling shareholder and from a subsidiary thereof and the price paid for these assets was converted into a loan agreement, which credit was used to pay up the capital increase. The execution of the purchase agreement and of the loan agreement was understood by CVM as a deception to carry on a capital increase in assets without complying with the applicable rules.
THEREFORE, CVM CONSIDERED THAT THE DEFENDANTS ACTED FRAUDULENTLY AGAINST THE LAW AND SENTENCED THEM TO PAY AN INDIVIDUAL FINE OF R$500 THOUSAND.
The decision can be accessed at: http://www.cvm.gov.br/noticias/arquivos/2015/20151215-2.html#clarion
_Brazilian Federal Revenue Services discloses the deadline for the repatriation of funds
The Brazilian Federal Revenue published on March 15, 2016 Normative Ruling 1.627/16 (“NR 1.627”), which regulates the Special Regime of Monetary and Tax Settlement (RERCT). Pursuant to NR 1.627, the final deadline to join the RERCT is October 31, 2016.
The NR can be accessed at: http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?visao=anotado&idAto=72224
For more information on the RERCT, please access our Newsletter dated January 2016 at: [incluir link newsletter Janeiro em inglês]