Last December, Amec – the Association of Capital Market Investors – sent a letter to the CVM’s chairman, Leonardo Pereira, expressing its deep contentment with the important decision against bureaucracy and towards the modernization of General Shareholders’ Meetings in Brazil. The regulator established that, according to the law, corporate shareholders, such as investment funds, publicly-held or close corporations, limited liability companies, foundations, associations or investment vehicles, no longer have to grant a power of attorney only to a lawyer or shareholder to participate in the meetings.
The fund management company Modal was the first to question the issue after that one of its funds was banned from voting in Brookfield’s meeting because the power of attorney was granted to an employee of the fund management team. The company vetoed the participation claiming that the employee was not a shareholder, manager or lawyer. In the understanding of the then director of CVM, Ana Novaes, the procedure was correct once the power of attorney was signed by two directors, according to the bylaws of the fund management company for its representation.