One of the most crucial tasks of the domestic capital market in 2016 is to advance the reform of the Novo Mercado, a new effort developed by the Brazilian Stock Exchange – BM&FBOVESPA, which has requested the opinion and participation of all stakeholders through a Public Consultation and workshops. Amec – the Association of Capital Market Investors – actively participated in these two fronts, in addition to preparing the President Letter 04/2016, which complements its members’ answers to the Public Consultation questionnaire.
In the document, the Association addresses its members’ concern about the format of the questionnaire. “By adopting a simple approach to deal with complex topics, there is the risk that the essence of the most important recommendations is not duly addressed.”
Amec’s members also report that, during the Public Consultation Workshop, there were topics that called their attention because they represent significant setbacks in terms of protecting shareholders and minimizing conflicts of interest. “The guiding principles behind the creation of Novo Mercado in 2001 were the alignment of interests, the symmetry of information and the value perception among controlling shareholders and investors,” explains Mauro Rodrigues da Cunha, Amec CEO.
In the document, the Association highlights that many operations have violated the principles of the Novo Mercado in the past years, with the ‘one share one vote’ premise going out the window. “Accordingly, Amec congratulates the BM&FBOVESPA on the initiative to update regulations and enable that good corporate governance practices create value for both companies and investors,” states Amec CEO.