The Brazilian Central Bank ("BACEN") issued Circular 3,814, amending some provisions of Circular 3,689, which regulates the registration of foreign capital in Brazil.
Two provisions of Circular 3,814, which establish new criteria and deadlines for the update of information regarding net worth, equity and paid-in capital by foreign investor drew attention:
"Article 34-A. Information regarding the value of net worth and paid-in equity of the invested company, as well as a breakdown of paid-in capital per foreign investor set forth in the registration shall remain updated.
§ 1º The total amount of paid-in equity in the invested company by each investor shall be updated and information on the supporting documents shall be provided.
§ 2º The update of information shall be made: I – within thirty days, as from the date of the occurrence of events, which modify corporate interest of the foreign investor; and II – annually, until March 31, referring to December 31 of the past year, except for the companies referred in article 34-B.
§ 3º In case of a non-business day in BACEN, the deadline of the abovementioned terms shall be automatically postponed until the following business day".
"Article 34-B. The invested companies with direct foreign investment represented by assets or net worth equal or greater than BRL 250,000,000.00 shall disclose financial information four times per year, in accordance with the following schedule:
I – financial information referring to March 31 shall be disclosed until June 30;
II - financial information referring to June 30 shall be disclosed until September 30;
III - financial information referring to September 30 shall be disclosed until December 31;
IV - financial information referring to December 31 shall be disclosed until March 31 of the succeeding year.
Sole paragraph. In case of a non-business day in BACEN, the deadline of the abovementioned terms shall be automatically postponed until the following business day".
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