In April 2015, CVM enacted Instruction 561 which establishes distance voting ballots to allow a larger number of shareholders to take part in public companies’ general meetings.
This mechanism allows shareholders to vote by email or post, via a custody agent or registrar, or directly through the company in which it is a shareholder, as authorized by Law 12.431/2011 which instituted distance voting at general meetings, updating Law 6.404/76 that governs public companies (Lei das S.As.).
Instruction 561 determines that companies shall provide ballots for Annual General Meetings and Extraordinary General Meetings whenever there is an election of members of the Board of Directors or Supervisory Board.
In 2017, companies that were part of the Ibovespa and IBrX-100 indices on April 07, 2015 must mandatorily provide distance voting to their shareholders. In 2018, all public companies will be under obligation to adopt distance voting ballots.
Read ICVM 561 in the original.
