published in April 4, 2023
by Andressa Lago
According to Brazilian legislation, the administrator of the Brazilian Company must meet every year, within the four months after the end of the fiscal year, with the main goal of taking the administrators’ accounts and discussing the balance sheet and the profit and loss statement.
Executing the Shareholders’ or Members’ Meeting Minutes is vital for a company’s administrators’ or board members’ safety. The Minutes exempt administrators from personal liability for losses and damages before quotaholders/shareholders and third parties, except in cases of error, intent, fraud, or simulation.
What are the effects of non-compliance with this obligation?
Failure to approve annual accounts could harm the Company’s financial operations, bidding processes, and even its capacity to take out bank loans.
In this sense, although no fine or penalty applies to this event, it is important that the Company approve its accounts annually to provide transparency for its acts and to keep it in good standing with its corporate obligations.
If the Company is interested, Commercial Registries team can provide advice on all administrative procedures before government agencies for compliance with established legal rules and deadlines.
+55 (11) 3292-5050
nn.sp@plbrasil.com.br
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