Brazil (BR)

Jurisdiction Overview

IDQuestionAnswer
172 *Are bearer shares available? Yes, unregistered bearer shares are available/circulating or registered by a private custodian.
 Data Date: 2018

Notes

 
Although the issuance of barer shares was prohibited in Brazil since 1900, some residual barer shares remained. In 2018, the Global Forum reported: "Brazil reaffirms its position that residual bearer shares relate in the main part to three large public companies (...). Brazil has recently surveyed its top three financial institutions that provide corporate bookkeeping services to conclude that the value of residual bearer shares is at around 0.06% of the capital of the surveyed companies, representing approximately BRL 1.5 billion (approximately USD 402 million) as at 30 September 2017, a decrease since the 2013 report (BRL 2 billion)" (GF 2018: 36). Although the Global Forum considers that the number of bearer shares is not material, we believe that a decrease from 0.15% bearer shares (as reported in the 2012 Global Forum report) to 0.06% of the capital of such companies (as reported in 2018) is not enough. We therefore conclude that bearer shares are not registered.
 
The Global Forum reported in 2012: "Since 1990, the issuance of bearer shares has been expressly prohibited in Brazil by Law No. 8.021/90 (Civil Code, article 907). […] the Brazilian authorities have indicated that only a small number of bearer shares remains outstanding, which represents, on an average, less than 0.15% of the capital of such companies" (GF 2012: 28-29). The Global Forum further reported in 2013 that: "The Brazilian authorities have indicated that only a small number of bearer shares remain outstanding, which represents, on an average, less than 0.1% of the capital of such companies. [...]. As of 30 September 2012, residual bearer shares were estimated to be worth approximately BRL 2 billion (approximately USD 980 million) and the Brazilian authorities have indicated that approximately 80% of these shares are attributable largely to three companies" (GF 2013: 41).

Sources

GF 2012: 28-29
 
GF 2013: 41
 
GF 2018: 35-36