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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.