Amec contributes to Public Hearing of the Central Bank
On April 7th, Amec made contributions to the Public Hearing 43/2014 of the Central Bank dealing with investments of non-resident investors in Brazil in the country’s financial and capital markets. The Central Bank proposes that the regulation is standardized and simplified into only one normative instrument regarding the provisions related to the investments of investors who do not reside in Brazil, including those made by means of Depositary Receipts (DRs).
In its Presidential Letter 06/2014, the Association of Capital Market Investors highlights that “Brazil is maybe the only country in the world that requires that proxy instruments are renewed on a yearly basis for representation in Shareholders’ Meetings. This requirement alone represents – according to one of Brazil’s major trustee funds – a loss of 30% in the voting instructions it receives because of overdue proxy instruments. Additionally, the need of confirming the documentation of the entire decision chain implies, for foreign investors, a cost that is disproportional to the benefit of exercising their rights as shareholders.”
In the Association’s opinion, the issue could be easily solved through the acknowledgment of investors’ legal representatives and of their eligibility to vote in Shareholders’ Meetings of the companies they invest on.
Click here to access the full letter.
