Decree No. 7.976
This memorandum addresses Decree No. 7.976 of April 1, 2013 ("Decree"), which authorizes the incorporation by Brazil′s executive branch of the Agência Brasileira Gestora de Fundos Garantidores e Garantias S.A. ("ABGF"), a state-owned company to be organized as a corporation ("sociedade anônima") and linked to the Ministry of Finance, as described in our memorandum dated June 1, 2012.
The above mentioned Decree establishes that the shareholders′ general meeting for the incorporation of ABGF and approval of its by-laws will be called by the Attorney-General of the National Treasury.
Furthermore, the Decree establishes that the initial corporate capital of the company will be R$50 million, divided into 50,000 shares, all nominative and without par value.
Despite criticism from the insurance sector, which has labeled this project "Segurobrás", the government views ABGF′s role as being to support large infrastructure projects in Brazil. The intention of the government is that ABGF will commence activities in the second half of this year.
The Decree entered into effect on April 2, 2013.
As a matter of course, we closely monitor such matters and will continue to keep our clients and partners abreast of important developments.
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