Amec calls CVM’s attention to abusive operations

In the beginning of September, Amec – the Association of Capital Market Investors – sent a letter to CVM – the Brazilian Securities and Exchange Commission – pointing out the negative effects that some recent operations can bring to the domestic capital markets. Through these operations, the controlling shareholder transfers its liabilities to the publicly-held company with no minimally justifiable consideration to remaining shareholders.
According to the document, which does not mentions specific cases, “It’s a poor practice that brings about immediate losses to the company’s minority shareholders and – what’s even worse – puts the credibility of the Brazilian capital market at stake.”
In the opinion of Amec’s members, some market agents have been able to conceal these operations so that they seem lawful, thus perpetuating abuses by controlling shareholders.
Click here to read the President Letter 12/2015 sent to CVM.