Amec criticizes CVM’s decision on not punishing the chair of the general meeting who failed to fulfill his duties
Amec’s members were taken by surprise at the decision of the Brazilian Securities and Exchange Commission – CVM – about the impossibility of the regulator to start proceedings against the chair of the general meeting. In Amec’s opinion, by delegating the power to supervise and punish possible abuses exclusively to the Judiciary, the CVM fails to protect minority shareholders, who are eventually relegated to their own fate – and subject to abusive conducts of controlling shareholders’ representatives, who will henceforth be outside the scope of coercive measures that could be imposed by the regulator.
On April 5, Amec expressed its concern in a letter sent to CVM’s Board, highlighting the legal provisions that suggest a different interpretation. Our members believe that, by making the minority shareholders’ rights more vulnerable, CVM is also giving up a very important aspect of its legal mandate: to advocate in favor of investors.
Click here to access the President Letter 6/2018 in full.
Click here to read the article published in the Valor Econômico newspaper that contextualizes CVM’s decision and Amec’s letter (portuguese).