Brazil on the Spotlight for its Proxy Access Evolution

Nowadays, one of the most important international discussions regards the investors’ capacity to appoint independent candidates to the councils of the investees companies.
In the Shareholder Rights Committee (SHRIG) at the ICGN, several countries demonstrated progress on the matter. Some criticized initiatives, such as the requirement of a long term share ownership, in order to make indications, which effectively creates different classes of shares.
Brazil was highly ranked thanks to CVM Official Letter SEP 02 2015, which guarantees investors the right to appoint candidates, assisting companies to publish such requests. In addition, CVM Instruction 561 was cited as an example of further evolution, facilitating the process of appointing and voting on behalf of local investors.
A key challenge discussed by all countries regards the difficulty to obtain a confirmation on a vote submission.
Amec mentioned its suggestion at the Public Hearing of 561 to publicize voting records in order to indicate coalitions and determine responsibilities. While the international community took the suggestion well, CVM, unfortunately, did not consider Amec’s input.