Hire a legal professional - Ready now

1. Virtual Lawyer - Demand letters, Contracts, Legal research, Family law, IP, Employment law. From $30.
2. Hire Nicole - US Family Law US Legal research, document proofing, drafting, discovery requests. From $100
3. Hire Jay - Corporate Laywer International law, legal research and contract law. From $200

Find a legal professional - View all

This answer is written by AI. The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. Do not rely solely on the information provided in this response for any legal decisions. Consult with a qualified legal professional before making any decisions.

Do Minority Shareholders in Brazil Have Preference Rights in Non-Publicly Traded Companies?

by

Question from SPSA, Do Minority Shareholders in Brazil Have Preference Rights in Non-Publicly Traded Companies?

Answer from AI:

In Brazilian corporate law, minority shareholders do have certain rights, including preference rights, also known as pre-emption rights, in non-publicly traded companies. These rights are designed to protect minority shareholders from dilution of their ownership stake.

What are Preference Rights?

Preference rights, or pre-emption rights, give existing shareholders the right to buy new shares before they are offered to others. This right allows shareholders to maintain their proportionate ownership in the company when new shares are issued.

Minority Shareholders’ Rights in Brazil

According to the Brazilian Corporations Law (Law No. 6,404/76), minority shareholders in non-publicly traded companies have the right to preferential purchase of shares in certain circumstances. This includes when the company issues new shares, or when a controlling shareholder sells their shares.

However, these rights can be limited or excluded in certain circumstances, such as:

  • When the company’s bylaws provide for the exclusion of the right of first refusal;
  • When the company is undergoing a capital increase and the shares are not fully subscribed;
  • When the company is undergoing a merger, consolidation, or incorporation.

Legal Advice and Consultation

The specifics of preference rights can be complex and depend on the individual circumstances of the company and the shareholder. Therefore, it is recommended that individuals consult with a legal professional for personalized advice.

For more information on Brazilian corporate law and minority shareholders’ rights, you can refer to the Brazilian Corporations Law (Law No. 6,404/76).

Please note that this information is a general explanation and does not constitute legal advice. Always consult with a legal professional for advice tailored to your specific circumstances.

Click to rate this post!
[Total: 0 Average: 0]

The answer is written by AI.

The text above is written by AI, i.e., a computer.

Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.

Related questions:

Please comment in the comment section below if something is incorrect.

Leave a Comment