On February 26, the Office of the Superintendent of Companies (SEP) of the Brazilian Securities and Exchange Commission (CVM) published the 2015 Official Letter with good news for the corporate governance area in the Brazilian capital market.
According to the official letter, the Board of Directors’ report that is usually submitted together with financial statements, shall include information related to the “decisions taken as a result of controlling shareholders’ guidance about the company’s activities,” such as investments, signing of agreements, and pricing policies, among others.
Additionally, SEP also recommends that publicly-held companies release the minutes of their Board of Directors’ meetings within seven business days “in the event decisions that bring effects among third-parties are taken.” Such minutes shall be published together with eventual declarations made by the company’s directors.
SEP also recommends the release of the minutes of Conselho Fiscal’s meetings in the event of approval of opinions, together with eventual declarations, within the same seven business days.
The Official Letter is a document issued on a yearly basis aimed to guide issuers about the publishing of periodical and eventual information and conducting of specific transactions.