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Normative instruction requiring non-resident investors to grant a power of attorney for an indefinite term has been amended

Category: M&A and private equity

On May 2, 2017, Normative Instruction No. 40 (“IN 40”), issued by the Department of Integration and Company Registration (“DREI”), was published, amending Article 2 of Normative Instruction No. 34 (“IN 34”), also issued by DREI, which required non-resident investors to grant a power of attorney, with special powers, to a legal representative in Brazil, for an indefinite term.

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BRAZILIAN CAPITAL ABROAD

Category: M&A and private equity

Individuals and legal entities residing, domiciled, or headquartered in Brazil, as defined in the tax legislation, must report the assets and amounts they hold outside the country to the Central Bank of Brazil. Such reporting is mandatory for those individuals and legal entities whose assets abroad (assets and rights, including, but not limited to, equity interest in companies, fixed-income securities, shares, real estate, deposits, loans, and investments) amount to or exceed the equivalent to one hundred thousand US Dollars (US$100,000.00), on December 31, 2016.

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Brazilian capital abroad

Category: M&A and private equity

Individuals and legal entities residing, domiciled, or headquartered in Brazil, as defined in the tax legislation, must report the assets and amounts they hold outside the country to the Central Bank of Brazil. Such reporting is mandatory for those individuals and legal entities whose assets abroad (assets and rights, including, but not limited to, equity interest in companies, fixed-income securities, shares, real estate, deposits, loans, and investments) amount to or exceed the equivalent to one hundred thousand US Dollars (US$100,000.00), on December 31, 2016.

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BRAZILIAN CENTRAL BANK UPDATES RDE-IED SYSTEM

Category: M&A and private equity

On January 30, 2017, the Central Bank of Brazil ("BACEN") instituted a new rule that revises the Electronic Registration Statement - Direct Foreign Investment (“RDE-IED”) and establishes new procedures for registering direct foreign investments in Brazil.

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Brazilian central bank updates rde-ied system

Category: M&A and private equity

On January 30, 2017, the Central Bank of Brazil ("BACEN") instituted a new rule that revises the Electronic Registration Statement - Direct Foreign Investment (“RDE-IED”) and establishes new procedures for registering direct foreign investments in Brazil.

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PARTNERS RESIDING AND DOMICILED OR HEADQUARTERED ABROAD MUST GRANT POWER-OF-ATTORNEY TO LEGAL REPRESENTATIVE IN BRAZIL FOR AN INDEFINITE PERIOD OF TIME

Category: M&A and private equity

On March 3, 2017, Normative Instruction No. 34 was issued by the Department of Integration and Company Registration (“DREI”), which provides rules for the registration with the local Boards of Trade of corporate acts of Brazilian companies that have as owners: (i) foreigners residing and domiciled in Brazil, (ii) Brazilian citizens or foreigners residing and domiciled abroad, and (iii) legal entities headquartered abroad (“IN 34”).

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