MP ends publication of company balance sheet in newspapers

The Official Gazette of Aug-06-2019 brought the Provisional Measure (MP) 892, which allows the disclosing of mandatory publications of the Corporations provided for in the Brazilian Corporation Law (call of meetings, notices to shareholders, management reports, balance sheets and financial statements, etc.) only at the Brazilian Securities Commission (CVM) websites and the market manager entity in which the company's securities are to be trading (when publicly traded companies), in addition to the email address itself.

According to previous legislation, these documents should be disclosed through a Union, State or Federal District (as official journals) official agency, and in a widely circulated newspaper in the domicile of the company's headquarters.

The measure provides that CVM will be responsible for ruling the publications under its powers. In addition, an act of the Minister of Economy will be issued to discipline the publication and disclosure of acts related to closed companies (whose shares are not traded on the stock exchange).

MP 892 revoked the Article 1 of the Law 13818/19, which limited the publication of the documents ordered by Corporate Law, from 2022, to newspapers of wide circulation, and in a summarized version.

This provisional measure shall take effect on the first day of the month following the date of publication of the CVM and the Ministry of Economy acts.