{"id":95747,"date":"2025-09-12T22:56:10","date_gmt":"2025-09-13T01:56:10","guid":{"rendered":"https:\/\/murray.adv.br\/?p=95747"},"modified":"2025-09-12T22:56:10","modified_gmt":"2025-09-13T01:56:10","slug":"brazil-weighs-splitting-corporate-law-circular-economy-bill","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/brazil-weighs-splitting-corporate-law-circular-economy-bill\/","title":{"rendered":"Brazil weighs splitting corporate law, circular economy bill"},"content":{"rendered":"
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Government rethinks support after changes to class action rules and pushback from industry groups<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n
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09\/12\/2025<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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The government may withdraw support for a bill amending Brazil\u2019s corporate law and creating a National Circular Economy Policy, after changes introduced by the rapporteur, Congressman Luciano Vieira, in the latest draft presented on Wednesday (10).\u00a0Valor<\/strong>\u00a0has learned that the\u00a0Lula administration<\/strong>\u00a0is considering requesting that the two proposals be split, so they can proceed separately. Strong resistance from business groups and a coalition of congressional caucuses representing the productive sector is likely to complicate Mr. Vieira\u2019s plan to put the bill to a vote next Tuesday (16).<\/p>\n<\/div>\n

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The corporate law bill was sent to Congress in 2023, in the wake of the\u00a0accounting scandal at retailer Americanas<\/a>, and is part of the Finance Ministry\u2019s microeconomic agenda. It had stalled until March, when it was bundled with bills on public procurement and circular economy as a strategy to speed up a floor vote. The package briefly appeared on the voting agenda earlier this month but was not considered. Mounting opposition to provisions in the combined bill has now led the government to rethink its strategy and weigh splitting the proposals.<\/p>\n<\/div>\n

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One point of contention involves the mechanism for collective lawsuits against administrators, controlling shareholders, or intermediaries accused of causing losses to companies or to the capital markets by violating rules set by Brazil\u2019s securities regulator CVM. In a previous version of his report, Mr. Vieira had endorsed an \u201copt-out\u201d model, in which all shareholders of a given class are automatically included in such collective actions. That approach was supported by the Finance Ministry.<\/p>\n<\/div>\n

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But in his latest draft, the rapporteur reverted to an \u201copt-in\u201d model, where only investors who formally sign on would be included in collective suits. Finance Ministry officials say they will not support the bill under this framework, arguing that it renders the proposal \u201cineffective,\u201d since individual investors already have the right to file claims on their own.<\/p>\n<\/div>\n

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Sources close to the ministry lamented the shift, noting that the earlier draft reflected a consensus with investors and companies. The reversal was also criticized by AMEC, the Capital Markets Investors Association. \u201cThe return to the opt-in model is a technical mistake. A collective protection mechanism is incompatible with selective protection of investors, because it leaves less organized groups, such as retail investors, without adequate safeguards,\u201d said AMEC President F\u00e1bio Coelho.<\/p>\n<\/div>\n

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While the Brazilian Association of Public Companies (ABRASCA) favors the opt-in model, it also expressed concerns. \u201cWe welcome the return to opt-in, which we see as the better option. But companies have increasingly flagged issues with sector-specific provisions inserted in this bill. We will meet next week to take a position on these additions, which were surprising,\u201d said ABRASCA President Pablo Ces\u00e1rio.<\/p>\n<\/div>\n

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On minority shareholders, the bill establishes civil liability for administrators and controlling shareholders in cases of violations of disclosure rules. It also explicitly provides for collective civil actions to compensate investors, in a model similar to U.S.-style class actions, and expands CVM\u2019s investigative powers.<\/p>\n<\/div>\n

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The circular economy provisions, however, are proving even more contentious. Mr. Vieira added sector-specific obligations and plans covering mining, agriculture, construction and infrastructure, automotive, oil and gas, and sanitation.<\/p>\n<\/div>\n

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A report obtained by\u00a0Valor<\/strong>\u00a0from the National Confederation of Industry (CNI) argued that the proposed National Circular Economy Policy \u201cdirectly impacts the entire productive sector, regardless of size, nature, or scale of operations.\u201d According to CNI, passage of the bill would subject millions of industrial and agribusiness facilities, farms, and commercial and service establishments to more than 70 new legal obligations. CNI did not comment.<\/p>\n<\/div>\n

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The coalition of congressional caucuses representing business interests issued a statement saying the original bill had been \u201ccompletely distorted by a regulatory maze that ignores the country\u2019s economic reality,\u201d and that the bundling of dozens of other unrelated proposals had created \u201ca legislative monster of more than 100 articles imposing unrealistic obligations and disproportionate penalties on the productive sector.\u201d<\/p>\n<\/div>\n

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The statement is backed by the Congressional Entrepreneurship Caucus and others representing free markets, commerce and services, agribusiness, sustainable mining, health, competitiveness, and biodiesel, among others. They argue that \u201cthe regulatory burden, indiscriminately affecting companies of all sizes and sectors, represents a serious risk to Brazil\u2019s competitiveness, since many firms lack the technical or financial capacity to comply with such complex and costly requirements.\u201d<\/p>\n<\/div>\n

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Mr. Vieira declined to comment.<\/p>\n

*By\u00a0Beatriz Roscoe\u00a0\u2014 Bras\u00edlia<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Government rethinks support after changes to class action rules and pushback from industry groups 09\/12\/2025 The government may withdraw support for a bill amending Brazil\u2019s corporate law and creating a National Circular Economy Policy, after changes introduced by the rapporteur, Congressman Luciano Vieira, in the latest draft presented on Wednesday (10).\u00a0Valor\u00a0has learned that the\u00a0Lula administration\u00a0is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26413,26412],"class_list":["post-95747","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-circular-economy-bill","tag-splitting-corporate-law"],"yoast_head":"\nBrazil weighs splitting corporate law, circular economy bill - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/brazil-weighs-splitting-corporate-law-circular-economy-bill\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brazil weighs splitting corporate law, circular economy bill - 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