CVM Instruction No. 586 amends registration rules for securities issuers

The standard originally published at the Official Gazette of June 08, and rectified at the journal on Jul-10-2017, amends CVM Instruction No. 480, which deals with the registration of issuers of securities admitted to trading on regulated markets, incorporating the duty of disclosure on the application of governance practices provided for in Brazilian Code of Corporate Governance - Public Companies.

Report on Brazilian Code of Corporate Governance - Publicly-Held Companies

CVM Instruction No. 586 added the requirement to provide information on deployment of governance practices provided for in the Brazilian Code of Corporate Governance - Publicly-Held Companies by issuers registered in category A whose shares or share deposit certificates are traded on exchanges of values. The report will follow the model "comply or explain" in which companies inform about the degree of adherence to the Brazilian Code of Corporate Governance's recommendations, requiring the issuers to explanations of the non-adoption of certain practices.

Deadlines

The issuer registered in category A should file the report on the Brazilian Code of Corporate Governance - Publicly-Held Companies, within seven (07) months from the fiscal year-end closing date, considering the following deadlines:

1) On Jan-01-2018, for companies which have, at publication of Instruction No. 586, at least one type or class of shares of its issuance, included in any of the following general indexes representative of securities portfolio Brazil Index 100 - IbrX-100 or Bovespa Index - IBOVESPA; and

2) On Jan-01-2019, for other issuers registered in category A authorized by market managing entity to trade shares on the stock exchange.

Important: The Articles 2, 5, 6, 7 and 8 of CVM Instruction No. 586 will be effective on Jan-01-2018.