Approval of Accounts

According to Brazilian corporate law, the quotaholders of limited liability companies and the shareholders of joint-stock companies must, within four months following the end of each fiscal year, hold an annual quotaholders resolution or an ordinary general meeting, as the case may be, to (i) review the management accounts; (ii) deliberate on the balance sheets and the economic result or the financial statements, as applicable; (iii) deliberate on the allocation of net income for the year and on the distribution of profits/dividends, if any; and (iv) elect officers, when applicable.

In most Brazilian companies, whether limited liability companies or joint-stock companies, the corporate year coincides with the fiscal year, i.e., beginning on January 1 and ending on December 31 of each year, in which case the annual quotaholders resolution or ordinary general meeting shall be held until April 30 of each year.

It is important to emphasize that companies are required to take some measures prior to the annual quotaholders resolution or ordinary general meeting, which may vary according to the corporate type, articles of association/bylaws and/or particularities of each company (e.g., net equity, assets and/or gross revenue, number of shareholders). Examples of such measures are the auditing and publication of the financial statements, publication of notices to the shareholders and call notices, among others.

Our Corporate team is disposal to assist in preparing the minutes of the annual quotaholders resolution or the ordinary general meeting of the company, as the case may be, and to provide any further clarification you may need.

Partners

Camila Caetano (camila.caetano@cmalaw.com)

Carolina Sant’Angelo (carolina.santangelo@cmalaw.com)

Fabiano Gallo (fabiano.gallo@cmalaw.com)

Rafaella Chiachio (rafaella.chiachio@cmalaw.com)

Renata Amorim (renata.amorim@cmalaw.com)