The recent dispute between StoneCo Ltd and TOTVS SA over the acquisition of Linx SA has brought to light many important matters, especially directors' responsibility for damages caused to a company or its shareholders. TOTVS presented a hostile takeover offer, something which the Brazilian market is not used to since most companies have a controller group which owns 50% or more of the voting shares.
Although the full impact of the COVID-19 pandemic on the job market is still unknown, it is possible to identify some of the main effects on employers, employees and workplaces. This article highlights government measures taken to date to help employers avoid terminations (eg, by suspending employment contracts or reducing working hours or salaries) and enable remote working and considers the pandemic's impact on workplaces and social security contributions.
In June 2020 the Global Aircraft Trading System (GATS) was launched to facilitate aircraft trading and financing by reducing the burden on industry participants – in particular, airlines. Since the GATS relies on the use of trusts, a traditional common law concept, a question arises as to whether the GATS can be used in jurisdictions such as Brazil that are not based on common law.
In light of the growing popularity of crowdfunding as a means of financing and maintaining small businesses' operations, it has remained on the Brazilian Securities and Exchange Commission's (CVM's) agenda, leading to discussions as to how the existing regulation can be improved. Thus, in August 2020, in the context of the COVID-19 pandemic, the CVM published a new resolution which has made temporary changes, on an experimental basis, to the existing regulatory requirements.
In a welcome move to distinguish large risks from 'seguros massificados' (ie, mass insurance), the Superintendence of Private Insurance has proposed changes to the regulation of large risks through the issuance of the Draft Resolution for Public Consultation 18/2020. The draft resolution represents an important potential turning point in the Brazilian insurance and reinsurance landscape, correcting an imbalance in favour of policyholders, at least to some degree.
More than 20 years since the enactment of Law 9,432/97 (the Navigation Act), a major reform of Brazil's cabotage laws is underway. The federal government, after public hearings and debate, recently concluded the draft of the BR do Mar Bill and sent it to Congress for urgent review. This article examines the bill's main aims and the measures that it proposes to introduce.
The National Council for Private Insurance – the Brazilian entity in charge of drawing up the country's reinsurance industry policies – recently introduced a series of changes to the regulatory landscape. Such changes aim to enforce the wider liberal agenda set out by the Ministry of the Economy and underline the federal government's commitment to a more liberalised economy.
The Brazilian real has devalued by more than 30% against the US dollar in 2020, making now an attractive time for Brazilian cedants supported by international reinsurers operating in US dollars to settle their claims. One of the salient features of Brazilian insurance claims is the accrual of significant levels of interest and monetary correction (ie, inflation-linked interest), which has the capacity to increase quantum at an alarming rate.
This article summarises the practical impact of Law 14,020/2020 and Decree 10,422/2020 on Provisional Measure 936 and employers. The new rules concern the reduction of working hours and salaries and the suspension of employment agreements, including with regard to pregnant, retired or disabled employees.
The COVID-19 crisis has brusquely forced businesses and professionals to close offices and work from home. Luckily, the Brazilian government began implementing measures relating to electronic filings and electronic signatures approximately 20 years ago, all of which have made closing aircraft deals from home offices relatively easy. The Brazilian Aeronautical Registry has adjusted some of its requirements on an interim basis to serve the aviation community by facilitating compliance with necessary formalities and filings.
The Ministry of the Economy and the Ministry of Health recently published Joint Ordinance Number 20, which provides the measures that employers must observe in order to prevent, control and mitigate the risk of COVID-19 transmission in their workplaces. This article highlights what employers need to know about the joint ordinance.
The National Petroleum Agency recently published a resolution regulating the bulk transportation of oil and its derivatives, natural gas and biofuels by water, including deep-sea navigation, cabotage and maritime, port and inland support. According to the new resolution, waterway transportation for export purposes must be carried out by Brazilian companies.
Brazil's airlines are now being subjected to a withholding tax that has not been charged on most leases for more than three decades. Airlines may be able to successfully challenge the legality of the withholding tax; however, this will require dedication of legal and administrative resources that might have been used elsewhere to fortify the airlines. In any event, under the final text of the law, the likelihood of lessors being liable for withholding tax has been reduced significantly.
The resignation of former Operation Car Wash judge and world-renowned anti-corruption crusader Sergio Moro as minister of justice and public safety has sent shockwaves throughout Brazil's political class. Easily the Bolsonaro administration's most recognised and admired cabinet member, Moro's departure via a televised press conference, where he accused the president of trying to interfere in ongoing investigations involving his family members, was likely not how he had envisioned his tenure ending.
Article 29 of Provisional Measure 927, enacted on 22 March 2020, states that infection with COVID-19 is not considered a labour-related disease unless a relationship between the disease and the employee's job or occupation can be evidenced. Several institutions, especially political parties, have questioned the constitutionality of this provision before the Supreme Court.
The São Paulo Court of Appeals recently issued a ruling in a redress lawsuit filed by an insurer against an ocean carrier, confirming the lack of proof of subrogation and disregarding the cargo survey carried out unilaterally by the insurer's surveyor. The case concerned cargo damage which had allegedly occurred during ocean carriage from Shanghai to Santos.
A draft law providing emergency relief due to the COVID-19 pandemic has been submitted to the lower house of Congress. The impact of the draft law on the rights of aircraft lessors would be significant and would place into question Brazil's compliance with the Cape Town Convention on International Interests in Mobile Equipment and the Protocol to the Convention on Matters Specific to Aircraft Equipment.
Provisional Measure 936 (PM 936) has been published and aims to maintain employment and preserve employees' income, while ensuring businesses continuity and reducing the social impact of the COVID-19 pandemic. This article highlights the main aspects covered by PM 936 and the relevant issues affecting labour relations.
The fallout from the COVID-19 pandemic looks set to cast a long shadow over the Brazilian aviation sector in 2020. The government has announced plans to assist airlines, but the possible relief efforts look set to affect Brazil's adherence to the Cape Town Convention and the Montreal Convention. This video examines these relief measures as well as Brazil's electronic filing system, which has come into its own during the COVID-19 lockdown.
The COVID-19 outbreak has been affecting supply chains worldwide and significantly impacting global trade and the maritime industry, including the offshore sector. As new regulations to handle the COVID-19 crisis have been issued on a daily basis, it is paramount that owners, charterers, traders and port operators keep a close eye on legal developments.