Senate approves MP who extends deadline for meetings of members

On 02/07/2020, the Senate plenary approved the provisional measure that extends the deadline, due to the coronavirus pandemic, for companies and cooperatives to hold the ordinary general meetings of shareholders or partners (AGO) required by legislation (MP 931/2020). The MP was approved in the form of the Conversion Bill (PLV) 19/2020 and now goes to the sanction of the presidency of the Republic.

According to the approved text, public limited companies (including open and closed companies, public companies and mixed economy companies and their subsidiaries) and limited companies (Ltda) that concluded the fiscal year between December 31, 2019 and March 31, 2020 will have up to seven months to hold these meetings. Before the MP, this period was four months. During the analysis of the matter in the chamber, deputies further extended the deadline for cooperatives, which will have up to nine months to make the Aug, two beyond what is established by the MP.

Normally, companies hold an ordinary general meeting of their shareholders within four months after the end of the fiscal year (12 months of activities), which does not necessarily coincide with the calendar year, in order to analyze, among other points, the financial statements, the allocation of profits and the distribution of dividends to shareholders. The extension of the deadline is valid even if internal rules provide for the Assembly to be held in a shorter period than provided for in the MP.

Also according to the text, the mandates of directors and members of the fiscal and administrative councils of these legal entities are extended until the general meeting is held within the new term.