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Law 14.030 is published and extends the term of the Ordinary General Meeting of Corporations

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Law 14,030/20 was published on July 29, 2020. It extends the legal deadline for holding ordinary general meetings of shareholders or partners, limited companies, limited liability companies, cooperative companies and cooperative representation entities during the year 2020.

The new rule originates from Provisional Measure 931/20, which was published in March, as part of a set of measures created by the Ministry of Economy to minimize the negative effects of the coronavirus pandemic on economic activities.

See some of the main points covered by Law 14,030/20:

Extension of deadlines and mandates:

  1. Corporations and limited liability companies that completed their fiscal years between December 31, 2019 and March 31, 2020 will have up to seven months to hold their meetings. The seven-month period is also applicable for associations, foundations and other societies, such as professional councils and sports entities.
  2. Cooperatives and cooperative representation entities will have nine months to hold the assemblies.
  3. The terms of directors and members of the fiscal and management councils will be extended until the general meeting is held, according to the new term established.

Assemblies and remote voting:

  1. Amendments to the Civil Code, the S/A Law and the Cooperatives Law: possibility of conducting meetings and assemblies in a digital way, also allowing remote voting by members, associates and shareholders.

Commercial boards:

  1. Alteration of the deadline for filing corporate acts: the corporate acts filed within 30 days of the reestablishment of the regular provision of services by the competent commercial board will take effect from the date of their signature.
  2. Suspension of prior filing requirement: the need for prior filing of acts in which there is a legal requirement, such as the issue of securities, is suspended. Archiving must be done within 30 days of reestablishing the operation of the respective commercial board.

Law 14,030 came into force on the date of its publication, consolidating relevant measures to mitigate the effects of the health crisis caused by Covid-19, bringing advances in the process of modernizing business activities in the country.