PRACTICAL GUIDE OF BM&FBOVESPA S.A. - BOLSA DE VALORES, MERCADORIAS E
FUTUROS
EXTRAORDINARY SHAREHOLDERS’ MEETING TO BE HELD ON MAY 13, 2014
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PRACTICAL GUIDE TO THE EXTRAORDINARY
SHAREHOLDERS’ MEETING
PRACTICAL GUIDE OF BM&FBOVESPA S.A. - BOLSA DE VALORES, MERCADORIAS E
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São Paulo, April 11, 2014
Dear Shareholders,
I am pleased to invite you to an Extraordinary General Meeting set to convene on May 13, 2014,
at 11 a.m., in our registered office premises at Praça Antônio Prado 48, downtown in São Paulo,
State of São Paulo, Brazil. The call notice for the meeting is set to be published in the “Valor
Econômico” newspaper on April 14, 2014, and in the Official Gazette of the State of São Paulo
on April 15, 2014.
I welcome this opportunity to hand over to you the enclosed practical guide to our meeting,
which provides details on the order of business and information you should find useful to
navigate the necessary paperwork and preparatory action, whether you plan to attend in person or
appoint a representative or would rather vote by proxy.
Additionally, along with the Management’s Proposal it encloses, the meeting guide includes and
attaches detailed information on the proposals we intend to submit for your consideration, which
to put it shortly, include some amendments to our Bylaws, and a change in our policy on long-
term executive compensation which entails adopting a Stock Awards Plan.
I should clarify the topics in the meeting agenda are the same we had planned to put forward to
you at the April 7 extraordinary meeting. However, having been unable to do so at that time, we
are now inviting you to convene in extraordinary meeting next May 13 so you can consider our
proposals. Moreover, we have since made changes designed to improve the proposed Stock
Awards Plan, so that you will find the Management’s Proposal now submitted to you differs
somewhat from the one released at the time we called the April 7 meeting.
In any event, let me add a word on the proposed Stock Awards Plan, which we view as a long-term
incentive tool that would allow us to reissue treasury stock and award shares to beneficiaries that,
through their hard work and dedication to our Company or its subsidiaries, meet performance-
related standards and cost-savings goals set by us.
In adopting this Stock Awards Plan, our primary objectives are to align the interests of eligible
beneficiaries (officers and executives of the Company and its subsidiaries) to yours, as
shareholders, while we remain competitive in attracting and retaining top high level talent. The
proposed Plan would give us the ability not only to keep pace with market practices and offer
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enticing compensation packages but, more importantly, would provide a strong incentive for our
officers and executives to perform their work in the best interest of the Company and, therefore,
yours as well.
I should add it is our intent, in case you approve the proposed Stock Awards Plan, to discontinue
the existing Stock Options Plan after we implement the former.
We value your opinion and consider extremely important that you participate in our meeting.
Shareholders’ meetings provide a unique venue for discussions on proposals we seek to
implement and for informed decision-making on matters of consequence for our future.
Accordingly, as part of our commitment to follow best corporate governance and transparency
practices, and for your convenience, we will be making available to you the “Online General
Meetings” platform provided by Assembleias Online® for electronic voting or voting by proxy,
which you may access at www.onlinegeneralmeetings.com (In English) or
www.assembleiasonline.com.br (in Portuguese), as you prefer.
Last, but not least, I recommend that you read the shareholders’ meeting guide carefully, and the
other documents made available to you in our investor relations gateway (at
www.bmfbovespa.com.br/ri/), and in our website (at www.bmfbovespa.com.br) and that of the
Brazilian Securities Commission (Comissão de Valores Mobiliários), or CVM (at
www.cvm.gov.br).
Finally, please bear in mind that if a quorum to convene the extraordinary meeting on first call is
not achieved, we will be calling the meeting to convene on second call in due course at a later
date.
Yours sincerely,
Pedro Pullen Parente
Chairman of the Board
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TABLE OF CONTENTS
CLARIFICATIONS AND ORIENTATIONS .......................................................................... 5
A. PARTICIPATION IN THE EXTRAORDINARY SHAREHOLDERS’ MEETING ............................... 7
A.1. POWER OF ATTORNEY .......................................................................................................... 7
A.1.1 Electronic Power of Attorney ........................................................................................... 7
A.1.1.1 Shareholders not registered on the Assembleias Online platform ............................ 8
A.1.1.2 Shareholders already registered on the Assembleias Online platform .................... 9
A.1.2 Physical Power of Attorney ............................................................................................ 10
A.1.2.1 PRE-ACCREDITATION .................................................................................................... 13
A.2. PUBLIC PROXY REQUESTS .................................................................................................. 13
B. MATTERS TO BE RESOLVED IN THE EXTRAORDINARY SHAREHOLDERS’ MEETING OF THE
BM&FBOVESPA...................................................................................................................... 14
C. DOCUMENTS THAT ARE PERTINENT TO THE MATTERS TO BE RESOLVED IN THE
EXTRAORDINARY SHAREHOLDERS’ MEETING OF THE BM&FBOVESPA ............................. 16
Exhibit I - Plan For Concession Of Shares ............................................................................. 18
Exhibit II - Comparative Table Of The Proposals For Amendment Of The Bylaws ......... 30
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PRACTICAL GUIDE TO THE EXTRAORDINARY SHAREHOLDERS’ MEETING OF
THE BM&FBOVESPA TO BE HELD ON MAY 13, 2014
CLARIFICATIONS AND ORIENTATIONS
This Pratical Guide contains the clarifications that are necessary to facilitate the participation of
the shareholders in the Extraordinary Shareholders’ Meeting of the BM&FBOVESPA to be held
on May 13, 2014, as well as information concerning matters to be resolved by the shareholders.
This initiative seeks to coordinate the practices adopted by the Company of timely and
transparent communication with its shareholders and the requirements of Law No. 6.404, of
December 15, 1976, as subsequently amended (“Corporations Law”), and of CVM Instruction
No. 481, of December 17, 2009 (“CVM Instruction No. 481”).
In compliance with the determinations of the Corporations Law, the BM&FBOVESPA will hold
the Extraordinary Shareholders’ Meeting called for:
Date: May 13, 2014
Venue: Praça Antônio Prado No. 48,
Downtown, São Paulo/SP – Brazil
Time: 11:00 a.m.
In the Extraordinary Shareholders’ Meeting the following matters included in the agenda will be
resolved:
(1) Adopting a Stock Awards Plan, as set forth in the relevant Management’s Proposal; and
(2) Amending the following provisions of the Bylaws of BM&FBOVESPA, as set forth in
the relevant Management’s Proposal:
(a) Article 5 – amendment to state the number of shares currently issued and
outstanding, following the cancellation of 80,000,000 treasury shares approved at a
meeting of the Board of Directors held on February 13, 2014, with no change in the
capital stock amount;
(b) Article 16, indent ‘e’ – amendment to include mention to a stock awards plan; and
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(c) general amendments to improve language, correct misspellings and make other
formal and wording adjustments, as follows (c.1) Article 6, main provision; (c.2) Article
7, main provision and paragraphs 2, 3 and 4; (c.3) Article 8, paragraph 2; (c.4) Article
12, main provision and paragraphs 1 through 8; (c.5) Article 13, main provision and
paragraphs 1 and 2; (c.6) Article 14; (c.7) Article 15, main provision and paragraphs 1
through 3; (c.8) Article 16, main provision and indent ‘a’; (c.9) Article 17, main
provision and paragraph 1; (c.10) Article 18, main provision and paragraphs 1 and 2;
(c.11) Article 21, sole paragraph; (c.12) Article 22, main provision and paragraphs 3
and 4; (c.13) Article 23, paragraphs 2, 3 and 6; (c.14) Article 24, main provision and
paragraphs 2, 3 and 6; (c.15) Article 26, main provision; (c.16) Article 27, main
provision; (c.17) Article 29, indents ‘a,’ ‘d,’ ‘e,’ ‘f,’ and ‘l’; (c.18) Article 31; (c.19)
Article 35, indent ‘l’; (c.20) Article 38, indent ‘f.’; (c.21) Article 43, paragraph 2 (indent
‘b’); (c.22) Article 47, indent ‘j’; (c.23) Article 49, paragraph 1 (indent ‘b’); (c.24)
Article 50, sole paragraph (indents ‘a’ and ‘c’); (c.25) Article 52, main provision,
paragraphs 1, 4 and 5; (c.26) Article 53, paragraph 1; (c.27) Article 54, sole paragraph;
(c.28) Article 55, paragraphs 3 through 6; (c.29) Article 58, main provision; (c.30)
Article 62, paragraph 2; (c.31) Article 63, main provision and paragraph 2; (c.32)
Article 64, main provision; (c.33) Article 65, paragraphs 2 and 3; (c.34) Article 70,
paragraph 1 (indent ‘c’), paragraph 4 (indent ‘a’) and paragraph 5 (indents ‘c,’ ‘d,’ and
‘e’); (c.35) Article 71; (c.36) Article 73, indent ‘b’; (c.37) Article 74; (c.38) Article 77;
and (c.39) Article 79.
We should clarify the topics in the meeting agenda are the same as included in the agenda for the
extraordinary shareholders’ meeting held on April 7, 2014. Pursuant to decisions then taken by
attendee shareholders, as set forth in the minutes of that meeting, we are resubmitting all of these
proposals to shareholders so they are considered and voted upon in a single meeting due to
certain correlations between the two main topics of the agenda. Such meeting was previously
scheduled to take place on April 22, 2014.
However, the Stock Awards Plan Proposal released previously in connection with the
extraordinary meeting of April 7, 2014, has since changed on account of certain improvements
the Board of Directors of the Company approved at a meeting held on April 10, 2014.
Accordingly, pursuant to Call Notice published on this date, we will now be submitting these
proposals for shareholder action to be taken in a single meeting convening on May 13, 2014, on
first call on, rather than on the meeting previously scheduled for April 22, 2014. This should give
shareholders more time to consider the proposed Stock Awards Plan.
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The information on the matters of the Extraordinary Shareholders’ Meeting is detailed in item B
of this Pratical Guide.
A. PARTICIPATION IN THE EXTRAORDINARY SHAREHOLDERS’ MEETING
The participation of the Shareholders in the Meeting of the Company is of extreme importance.
We inform that for convening a Extraordinary Shareholders’ Meeting it will be necessary to have
the presence of shareholders that represent at least one quarter (1/4) of the capital stock of the
Company to resolve on the proposal of a Stock Concession Plan. While for the resolution
relative to the proposals of amendment of the Bylaws of the Company the quorum for convening
is of at least two thirds (2/3) of its capital stock. If these quorums are not attained, the Company
will announce a new date for holding the Extraordinary Shareholders’ Meeting on second call,
which can convene with the presence of any number of shareholder. If only the quorum that is
necessary for convening the Extraordinary Shareholders’ Meeting for resolution on the proposals
of amendment to the Bylaws of the Company is not attained, the meeting will again be called so
as to, on second call, resolve only on this item of the agenda and on the proposal of restatement
of the Bylaws.
The participation of the shareholders can be personal or by a duly established attorney-in-
fact.
It will be required to present the following documents, as the case may be:
Natural persons ID of the shareholder or, if applicable, ID of his/her
attorney-in-fact and the relevant power of attorney
Legal persons Corporate documents that evidence the legal
representation of the shareholder
ID of the legal representative
A.1. POWER OF ATTORNEY
A.1.1 Electronic Power of Attorney
With the purpose of facilitating and encouraging the participation of its shareholders the
BM&FBOVESPA will once again make available the “Assembleias Online” system, by means
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of which the shareholders can grant powers of attorney for resolution on all of the matters of the
agenda of the shareholders’ meetings, by means of a valid digital certificate, either private or of
the Infraestrutura de Chaves Públicas Brasileiras – ICP-Brasil (Brazilian Public Code Keys
Infrastructure), on the terms of Provisional Remedy No. 2200-2, of August 24, 2001.
In order to vote via Internet the shareholder must register on address
www.assembleiasonline.com.br and obtain cost-free his/her/its digital certificate. The
shareholders as from now may initiate the procedures to register and obtain the digital certificate.
A power of attorney granted via the electronic platform must follow the rules described in item
A.1.2 below for appointment of the attorneys-in-fact. We note that in the case of the Company
announce new date for the Extraordinary Shareholders’ Meeting, on second call, the platform
"Assembleias Online" will also be made available to shareholders at that time.
A.1.1.1 Shareholders not registered on the Assembleias Online platform
Step 1 – Registration on the portal:
a) Access address www.assembleiasonline.com.br, click on “cadastro e certificado” and select
the adequate profile (individual or legal entity shareholder);
b) Complete the register, click on cadastrar, confirm the data and you will immediately have
access to the instrument of adherence in the case of an individual, or to the instrument of
representation in the case of a legal entity. The instrument must be printed, initialed on all of the
pages and executed with a certified signature.
If the shareholder already has a digital certificate issued by the ICP-Brasil, it is necessary only to
effect the registration and sign digitally the instrument of adherence or the instrument of
representation, as the case may be, in order to be qualified to vote by means of the “Assembleias
Online” portal. Thus, the shareholder may proceed directly to Step 3 described below.
Step 2 – Validation of the registration and receipt of the private digital certificate:
a) The shareholder will receive by email from the “Assembleias Online” portal a list of
documents that are necessary for validation of the registration, including the instrument of
adherence or the instrument of representation, as the case may be. All of the documents must be
sent by mail to the “Assembleias Online” address shown in the mentioned email.
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b) As soon as the documentation is validated by the “Assembleias Online” team the shareholder
will receive a new email showing the procedures for issuance of the “Assembleias Online”
Digital Certificate.
c) After issuance of the certificate the shareholder is ready to vote via Internet in the
Shareholders’ Meetings of the BM&FBOVESPA.
Step 3 – Granting of power of attorney by electronic means:
a) After completion of the steps designated above, in order to exercise your voting right by
electronic power of attorney access address www.assembleiasonline.com.br, insert your login,
select the Meetings of the BM&FBOVESPA, vote and sign the power of attorney electronically;
b) The shareholder will receive proof of his/her/its vote by email from the “Assembleias Online”
portal.
The shareholder will have the period from April 29, 2014 to 6:00 p.m. on May 12, 2014 to grant
a power of attorney through the “Assembleias Online” portal.
A.1.1.2 Shareholders already registered on the Assembleias Online platform
In the event that the shareholder has already carried out previously steps 1 and 2 of item A.1.1.1
above, he/she/it must verify the validity of his/her/its digital certificate, so that if the term of
effectiveness as expired he/she/it can provide for its renewal.
For a renewal of the digital certificate issued by Certisign, it will be necessary to access the
administrative menu through the Assembleias Online address, and opt for the service of renewal
of digital certificate.
After confirming the validity of his/her/its digital certificate, the shareholder is qualified to grant
powers of attorney by means of the Assembleias Online platform, with observance of the
instructions shown in address www.assembleiasonline.com.br and of step 3 of item A.1.1.1
above.
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A.1.2 Physical Power of Attorney
In addition to the granting of a power of attorney in electronic form, the powers of attorney may
also be granted in the traditional form, by means of a physical instrument.
On the terms of Article 126, Paragraph One, of the Corporations Law, the shareholder may be
represented by an attorney-in-fact that has been appointed since one (1) year ago and that is a
shareholder, attorney, financial institution or administrative officer of the Company.
If the shareholder cannot be present at the Shareholders’ Meeting or cannot be represented by an
attorney-in-fact of his/her/its choice, the Company makes available the names of three attorneys-
in-fact to represent him/her/it following the voting orientation rendered by the shareholder:
1) To vote FAVORABLY on the matters shown in the agenda:
Roberto Augusto Belchior da Silva, Brazilian, married, attorney, domiciled in this Capital City
of São Paulo at Praça Antonio Prado No. 48, enrolled with at OAB/SP (Brazilian Bar
Association – Chapter São Paulo) under No. 113.495 and enrolled with the Individual Taxpayers
Register of the Ministry of Finance under CPF/MF No. 867.075.747-87.
2) To vote AGAINST on the matters shown in the agenda:
Marcelo de Siqueira Ferraz, Brazilian, divorced, business administrator, domiciled in this
Capital City of the State of São Paulo at Praça Antonio Prado No. 48, bearer of Identity Card RG
No. 15.992.504-SSP/SP, enrolled with CPF/MF under No. 800.202.676-49.
3) To ABSTAIN on the matters shown in the agenda:
Érico Rodrigues Pilatti, Brazilian, single, attorney, domiciled in this Capital City of the State of
São Paulo at Praça Antonio Prado No. 48, ID No. 30.386.458-8–SSP/SP, enrolled with the
CPF/MF under No. 221.402.578-20.
Accordingly we present the sample of instrument of power of attorney below.
The Company will not require certified signatures and/or consularization of the instruments of
power of attorney granted by the shareholders to their relevant representatives.
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SAMPLE OF POWER OF ATTORNEY
POWER OF ATTORNEY
[SHAREHOLDER], [IDENTIFICATION] (“Grantor”), in its capacity as shareholder of
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros (“Company”),
hereby establishes and appoints as its attorneys-in-fact:
Roberto Augusto Belchior da Silva, Brazilian, married, attorney, domiciled in this
Capital City of São Paulo, at Praça Antonio Prado No. 48, enrolled with at OAB/SP
under No. 113.495 and enrolled with the Individual Taxpayers Register of the Ministry
of Finance under CPF/MF No. 867.075.747-87, to vote FAVORABLY on the matters
shown in the agenda, in accordance with the orientation expressed below rendered by the
Grantor;
Marcelo de Siqueira Ferraz, Brazilian, divorced, business administrator, domiciled in
this capital City of the State of São Paulo, at Praça Antonio Prado No. 48, bearer of
Identity Card RG No. 15.992.504-SSP/SP, enrolled with CPF/MF under No.
800.202.676-49, to vote AGAINST on the matters shown in the agenda, in accordance
with the orientation expressed below rendered by the Grantor;
Érico Rodrigues Pilatti, Brazilian, single, attorney, domiciled in this Capital City of the
State of São Paulo, at Praça Antonio Prado No. 48, ID No. 30.386.458-8–SSP/SP,
enrolled with the CPF/MF under No. 221.402.578-20, to ABSTAIN on the matters
shown in the agenda, in accordance with the orientation expressed below rendered by the
Grantor;
granting to them powers to attend, examine, discuss and vote on behalf of the Grantor in
the Extraordinary Shareholders’ Meeting of the Company to be held on May 13, 2014, at
11:00 a.m., at Praça Antonio Prado No. 48, Downtown, in the City of São Paulo, State of
São Paulo, at the Company headquarters, in accordance with the orientations established
below, concerning the following matters shown in the Agenda.
Agenda
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(1) Adopting a Stock Awards Plan, as set forth in the relevant Management’s Proposal;
and
In favor ( ) Against( ) Abstention( )
(2) Amending the following provisions of the Bylaws of BM&FBOVESPA, as set
forth in the relevant Management’s Proposal:
(a) Article 5 – amendment to state the number of shares currently issued and
outstanding, following the cancellation of 80,000,000 treasury shares approved at a
meeting of the Board of Directors held on February 13, 2014, with no change in the
capital stock amount;
In favor ( ) Against( ) Abstention( )
(b) Article 16, indent ‘e’ – amendment to include mention to a stock awards plan; and
In favor ( ) Against( ) Abstention( )
(c) general amendments to improve language, correct misspellings and make other
formal and wording adjustments, as follows(c.1) Article 6, main provision; (c.2) Article
7, main provision and paragraphs 2, 3 and 4; (c.3) Article 8, paragraph 2; (c.4) Article
12, main provision and paragraphs 1 through 8; (c.5) Article 13, main provision and
paragraphs 1 and 2; (c.6) Article 14; (c.7) Article 15, main provision and paragraphs 1
through 3; (c.8) Article 16, main provision and indent ‘a’; (c.9) Article 17, main
provision and paragraph 1; (c.10) Article 18, main provision and paragraphs 1 and 2;
(c.11) Article 21, sole paragraph; (c.12) Article 22, main provision and paragraphs 3 and
4; (c.13) Article 23, paragraphs 2, 3 and 6; (c.14) Article 24, main provision and
paragraphs 2, 3 and 6; (c.15) Article 26, main provision; (c.16) Article 27, main
provision; (c.17) Article 29, indents ‘a,’ ‘d,’ ‘e,’ ‘f,’ and ‘l’; (c.18) Article 31; (c.19)
Article 35, indent ‘l’; (c.20) Article 38, indent ‘f.’; (c.21) Article 43, paragraph 2 (indent
‘b’); (c.22) Article 47, indent ‘j’; (c.23) Article 49, paragraph 1 (indent ‘b’); (c.24)
Article 50, sole paragraph (indents ‘a’ and ‘c’); (c.25) Article 52, main provision,
paragraphs 1, 4 and 5; (c.26) Article 53, paragraph 1; (c.27) Article 54, sole paragraph;
(c.28) Article 55, paragraphs 3 through 6; (c.29) Article 58, main provision; (c.30)
Article 62, paragraph 2; (c.31) Article 63, main provision and paragraph 2; (c.32) Article
64, main provision; (c.33) Article 65, paragraphs 2 and 3; (c.34) Article 70, paragraph 1
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(indent ‘c’), paragraph 4 (indent ‘a’) and paragraph 5 (indents ‘c,’ ‘d,’ and ‘e’); (c.35)
Article 71; (c.36) Article 73, indent ‘b’; (c.37) Article 74; (c.38) Article 77; and (c.39)
Article 79.
In favor ( ) Against( ) Abstention( )
[City], [month] [day], [2014]
_____________________________
Grantor
By: (name)
(title)
A.1.2.1 PRE-ACCREDITATION
For the case of granting powers of attorney by physical means, the documents referred to in “A”
and “A.1.2” can be delivered at the headquarters of the BM&FBOVESPA up to the time for
opening the Shareholders’ Meetings.
However, aiming at facilitating the access of the shareholders to the Shareholders’ Meetings, we
ask that the delivery of such documents be made as early as possible, as from April 29, 2014.
The documents must be delivered at Praça Antonio Prado No. 48, 6th
floor, Centro, CEP: 01010-
901, São Paulo/SP – Brazil, care of the Investors Relations Executive Office, tel.: + 55 11 2565-
5142, email: [email protected].
A.2. PUBLIC PROXY REQUESTS
Shareholders that detain zero-point-five percent (0.5%) or more of the capital stock may enter
public proxy requests on the “Assembleias Online” system, on the terms of the Corporations
Law and of CVM Instruction No. 481.
The public proxy requests must be accompanied by a draft of the power of attorney and by the
information and other documents required in CVM Instruction No. 481, particularly in its
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Exhibit 23, and delivered at Praça Antonio Prado No. 48, 7th
floor, Downtown, Postal Code:
01010-901, São Paulo/SP – Brazil, care of the Products and Investors Relations Executive
Officer of the Company, Mr. Eduardo Refinetti Guardia.
The Company will fulfill the public proxy requests submitted by the shareholders within two (2)
business days counting from the date of the relevant request, showing the same highlight on the
“Assembleias Online” system as for the other documents made available by the Company.
The Company and its management are not responsible for the information contained in public
proxy requests made by shareholders.
B. MATTERS TO BE DELIBERATED IN THE EXTRAORDINARY SHAREHOLDERS MEETING
OF BM&FBOVESPA
Pursuant to the provisions of the Corporations Law, the Extraordinary Shareholders’ Meeting
shall be called to deliberate on any matters that are not covered by the Annual Shareholders’
Meeting, namely: financial statements, the allocation of net income, the establishment of the
amount of remuneration for management and the election of the members of the Board of
Directors.
This Extraordinary Shareholders Meeting has been called to deliberate on the proposal for the
Company to adopt a Stock Awards Plan and to amend provisions of the Bylaws. Below are the
BM&FBOVESPA management’s clarifications concerning the items to be considered in the
Extraordinary Shareholders’ Meeting:
First Item Deliberation on the adoption of a Stock Awards Plan by the Company, as
per the Management Proposal.
Management proposes to the general shareholders’ meeting deliberation on the Company
adopting a Stock Awards Plan (the “Stock Awards Plan”).
This Stock Awards Plan represents an improvement to the Company’s long-term incentive
practices and aims primarily to help us advance our expansion plans and better accomplish
corporate purposes in the best interest of shareholders, by granting management and employees
of the Company and its direct and indirect subsidiaries the opportunity of becoming, and thus
aligning their interests with, shareholders. It also enables the Company and its subsidiaries to
attract and retain high-level management and employees.
We emphasize that this proposed Stock Awards Plan includes enhancements to the proposal
existing at the time we called the extraordinary general meeting of April 07, 2014. These
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enhancements were approved at a Board meeting held on April 10, 2014, and are presented in
greater detail in the document attached hereto as Appendix I, along with the information required
under Annex 13 of Brazilian Securities Commission (CVM) Ruling 481/2009 and the full text of
the Stock Awards Plan now proposed.
We also stress that, consistent with article 23 of CVM Ruling 10/1980, that if the proposed Stock
Awards Plan is approved at the shareholders’ meeting, it will still have to be submitted to the
Brazilian Securities Commission for approval.
Moreover, if the proposed Stock Awards Plan is approved and implemented, the Company will
discontinue the granting of stock options under the existing Stock Options Plan, while observing
the vested rights and obligations of existing grantees.
Second item To resolve on the proposals for amendment to the Bylaws of the
BM&FBOVESPA, as per the Management Proposal.
On the terms of item 1 above, Management is proposing to the Extraordinary Shareholders’
Meeting the adoption of a Stock Concession Plan, as instrument of long-term remuneration
applicable to the directors, executive officers and employees of the Company. For
implementation of the mentioned Plan, if it be approved by the Meeting, in addition to prior
approval by the CVM, it would be recommendable to adjust certain statutory provisions.
Another adjustment that is being proposed consists of an amendment to Article 5, main
provision, of the Bylaws, considering that the Board of Directors of the BM&FBOVESPA, in a
meeting held on February 13, 2014, approved the cancellation of 80,000,000 shares issued by the
Company held in treasury, which were acquired within the scope of the programs for repurchase
of shares implemented by the Company, without reduction of its capital stock. As a result of the
mentioned cancellation, the subscribed and paid-in capital stock of two billion, five hundred and
forty million, two hundred and thirty-nine thousand, five hundred and six-three Reais and eighty-
eight cents (R$2,540,239,563.88) will then be represented by one billion, nine hundred million
(1,900,000,000) common shares.
Lastly, one is taking the opportunity to propose certain orthographic corrections in the text of the
Bylaws, particularly on account of the last reform of the Portuguese language.
In order to reflect the events above, as well as certain other formal and wording adjustments, it is
proposed to amend the following articles of the Bylaws of the BM&FBOVESPA:
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(a) Article 5 – amendment to state the number of shares currently issued and outstanding,
following the cancellation of 80,000,000 treasury shares approved at a meeting of the Board of
Directors held on February 13, 2014, with no change in the capital stock amount;
(b) Article 16, indent ‘e’ – amendment to include mention to a stock awards plan; and
(c) general amendments to improve language, correct misspellings and make other formal
and wording adjustments, as follows(c.1) Article 6, main provision; (c.2) Article 7, main
provision and paragraphs 2, 3 and 4; (c.3) Article 8, paragraph 2; (c.4) Article 12, main provision
and paragraphs 1 through 8; (c.5) Article 13, main provision and paragraphs 1 and 2; (c.6)
Article 14; (c.7) Article 15, main provision and paragraphs 1 through 3; (c.8) Article 16, main
provision and indent ‘a’; (c.9) Article 17, main provision and paragraph 1; (c.10) Article 18,
main provision and paragraphs 1 and 2; (c.11) Article 21, sole paragraph; (c.12) Article 22, main
provision and paragraphs 3 and 4; (c.13) Article 23, paragraphs 2, 3 and 6; (c.14) Article 24,
main provision and paragraphs 2, 3 and 6; (c.15) Article 26, main provision; (c.16) Article 27,
main provision; (c.17) Article 29, indents ‘a,’ ‘d,’ ‘e,’ ‘f,’ and ‘l’; (c.18) Article 31; (c.19) Article
35, indent ‘l’; (c.20) Article 38, indent ‘f.’; (c.21) Article 43, paragraph 2 (indent ‘b’); (c.22)
Article 47, indent ‘j’; (c.23) Article 49, paragraph 1 (indent ‘b’); (c.24) Article 50, sole
paragraph (indents ‘a’ and ‘c’); (c.25) Article 52, main provision, paragraphs 1, 4 and 5; (c.26)
Article 53, paragraph 1; (c.27) Article 54, sole paragraph; (c.28) Article 55, paragraphs 3 through
6; (c.29) Article 58, main provision; (c.30) Article 62, paragraph 2; (c.31) Article 63, main
provision and paragraph 2; (c.32) Article 64, main provision; (c.33) Article 65, paragraphs 2 and
3; (c.34) Article 70, paragraph 1 (indent ‘c’), paragraph 4 (indent ‘a’) and paragraph 5 (indents
‘c,’ ‘d,’ and ‘e’); (c.35) Article 71; (c.36) Article 73, indent ‘b’; (c.37) Article 74; (c.38) Article
77; and (c.39) Article 79.
A comparative table between the current version of the Bylaws of the Company and the version
proposed by Management, with their justifications, is shown in Exhibit II hereto.
C. DOCUMENTS THAT ARE PERTINENT TO THE MATTERS TO BE RESOLVED IN THE
EXTRAORDINARY SHAREHOLDERS MEETINGOF THE BM&FBOVESPA
The following documents are available for the Shareholders at the headquarters of the Company,
in its Investors Relations site (www.bmfbovespa.com.br/ri/), as well as in the BM&FBOVESPA
site (www.bmfbovespa.com.br) and Brazilian Securities Commission site (www.cvm.gov.br):
Call Notice
Information on the proposal for the Plan for Concession of Shares – Exhibit 13 of
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CVM Instruction No. 481
Comparative table of the proposals of amendment to the Bylaws and their
relevant justifications.
We stress that in order to clarify any doubts the Investors Relations Executive Office should be
contacted on telephones +55 11 2565-4007, 2565-4729, 2565-4418, 2565-4834 or 2565-4207 or
by email sent to [email protected].
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EXHIBIT I
PLAN FOR CONCESSION OF SHARES – INFORMATION REQUIRED BY EXHIBIT 13
OF CVM INSTRUCTION No. 481
1. Copy of the proposed plan.
BM&FBOVESPA S.A. - BOLSA DE VALORES, MERCADORIAS E FUTUROS
National Corporate Taxpayers Register of the Ministry of Finance (CNPJ/MF) No. 09.346.601/0001-25
State Registration Number (NIRE) 35.300.351.452
STOCK AWARDS PLAN
approved by the Extraordinary Shareholders Meeting held on [XX] [X], 20XX.
1. Purpose of the Stock Awards Plan
1.1. The Purpose of the Stock Awards Plan of BM&FBOVESPA S.A. – Bolsa de Valores,
Mercadorias e Futuros (“Company” or “BM&FBOVESPA”), created pursuant to the applicable law and
regulations of the Brazilian Securities Commission (“CVM”) (“Stock Awards Plan”), is to provide the
managers and employees of the Company and of its direct and indirect controlled companies (included in
the concept of Company for the purposes of this Stock Awards Plan) with the opportunity to become
shareholders of the Company, consequently obtaining an increased alignment of their interests with the
interests of the shareholders and sharing the capital market risks, as well as enabling the Company and its
controlled companies to attract and retain its managers and employees.
1.2. The managers and employees of the Company and controlled companies (“Beneficiaries”) are
eligible to take part in the Stock Awards Plan, with due regard for the provisions of item 12 of this Stock
Awards Plan.
2. Shares Included in the Stock Awards Plan
2.1. Shares may be granted within the scope of this Stock Awards Plan, in the course of its term of
effectiveness, up to 2.5% of the total shares of the Company’s capital stock, verified on its granting date.
2.1.1. The limit set forth in item 2.1 does not take into account the shares actually transferred under this
plan and the remaining balances of other Plans in effect as of the date of approval of this Stock Awards
Plan.
2.2. For the purposes of this Stock Awards Plan, the Company shall use shares held in treasury, with due
regard for the CVM rules.
3. Management of the Stock Awards Plan
3.1. The Stock Awards Plan shall be directly managed by the Board of Directors or, at its discretion, by
the Company’s Remuneration Committee (“Committee”).
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3.2. The Board of Directors or the Committee, as applicable, shall define annually the total number of
shares to be granted to the Beneficiaries according to the results achieved by the Company in compliance
with objective performance goals, which shall include, at least, profit goals and expected results for the
fiscal year, as determined by the Board of Directors.
3.3. The Board of Directors or the Committee, as applicable, may grant for an annual fiscal year, subject
to the provisions of item 3.2, the maximum of up to 0.8% of the total capital of the Company, as
ascertained on its grant date.
3.4. The Board of Directors or the Committee, as the case may be, shall have broad powers, with due
regard for the provisions of the Stock Awards Plan and, in relation to the Committee, the guidelines fixed
by the Company’s Board of Directors, for the organization and management of the Stock Awards Plan
and the granting of shares.
3.4.1. Notwithstanding the provisions in the main section hereof, no decision of the Board of Directors or
of the Committee shall, except for the adjustments permitted under the Stock Awards Plan: (i) increase
the total limit of the shares that may be granted; (ii) modify or damage any rights or obligations of any
existing agreement without the Beneficiary’s consent; (iii) modify the rules relating to the granting of
shares to the Board of Directors, as defined in item 12 below.
3.5. The Board of Directors or the Committee may, at any time, at all times with due regard for the
provisions in item 3.4.1: (i) modify or discontinue the Stock Awards Plan; (ii) establish, as proposed by
the Chief Executive Officer, goals relating to the performance of the employees and officers of the
Company and its controlled companies, in such a manner to establish criteria for election of the
Beneficiaries or determination of the quantity of shares to be attributed to them; (iii) except for the
provisions in item 10.2 of this Stock Awards Plan, accelerate any terms for transfer of the shares; and (iv)
establish the regulations applicable to omitted cases.
3.6. In the exercise of its responsibilities, the Board of Directors or the Committee, as the case may be,
shall be solely subject to the limits established by law, by the CVM regulations and by the Stock Awards
Plan, not being required, under any rule of equal condition under the law or analogy, to extend to
everyone the conditions that they deem to be solely applicable to some, with due regard for the
peculiarities of each case.
3.7. The resolutions of the Board of Directors or the Committee, as the case may be, are binding upon the
Company and the Beneficiaries in relation to all matters concerning the Stock Awards Plan.
4. Provisions and Conditions for granting of shares
4.1. The Board of Directors or the Committee, as the case may be, shall create Stock Awards Programs
(“Programs”) from time to time, which shall define: (i) the Beneficiaries; (ii) the total number of shares of
the Company subject to granting, subject to the provisions in item 3.2 and 3.3; (iii) criteria for election of
the Beneficiaries and determination of the quantity of shares to be allocated, subject to the provisions in
item 4.1.2 and 4.1.3; (iv) the division of the shares in lots, subject to the provisions in item 4.1.1; (v)
waiting periods for transfer of the shares, subject to the provisions in item 4.1.1; (vi) any restrictions to
the transfer of shares received by the Beneficiaries, pursuant to item Erro! Fonte de referência não
encontrada. below; and (vii) any provisions about penalties.
4.1.1. For each Program, a minimum total term of three (3) years from that Program's stock grant date and
the last date for transfer of stock granted to the same Program shall be respected. Moreover, a minimum
waiting period of twelve (12) months shall be respected between: (i) the Program’s grant date and the first
transfer date of any lot of shares from that Program and (ii) between each of the lots of shares of that
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program, after the first transfer.
4.1.2. The Board of Directors or the Committee, as appropriate, shall establish ranges on the number of
shares that will be tied to the expected profits of the Company, subject to Section 3.2, and the level of
responsibility and strategic importance of the function that the Beneficiary exercises.
4.1.3. The granting of shares shall be conditioned on the achievement of goals by the Beneficiaries and
individual assessment of performance and potential.
4.1.4. The granting of shares to members of the Board of Directors is subject to the provisions set forth in
item 12 below.
4.2. When each Program is launched, the Board of Directors or the Committee, as the case may be, shall
determine the terms and conditions for granting shares in a Stock Awards Agreement (“Agreement”), to
be entered into by and between the Company and each Beneficiary. The Agreement shall define at least
the following conditions:
a) the quantity of shares that the Beneficiary shall be entitled to receive, in accordance with the
Program, as long as the terms and conditions established therein are satisfied;
b) the term and conditions for transfer of the shares, subject to item 4.1.1;
c) rules about any restrictions on the transfer of the shares received and provisions about
penalties in case of breach of such restrictions; and
d) any other provisions and conditions that are not in accordance with the Stock Awards Plan or
the respective Program.
4.3. The transfer of shares to the Beneficiary shall solely take place upon the consummation of the
conditions and terms set forth in this Stock Awards Plan, in the Programs and Agreements, in such a
manner that the granting of the right to receive the shares does not guarantee to the Beneficiary by itself
any rights in the shares and does not even represents any guarantee of receipt thereof.
4.4. The shares granted shall have the rights established in the Stock Awards Plan and in the respective
Programs and Agreements, provided that the Beneficiary shall not be entitled to receive dividends or any
other proceeds before the definite transfer of such shares.
4.5. No share shall be transferred to the Beneficiary unless all legal, regulatory and contractual
requirements have been fully satisfied.
4.6. No provision of the Stock Awards Plan, of any Program or of the Agreement shall entitle any
Beneficiary to remain as a manager or employee of the Company, nor shall it interfere in any manner with
the Company’s rights to terminate, at any time, the manager’s term of office or the employee’s
employment contract.
4.7. The shares granted under the Stock Awards Plan have no relationship and are not related to its fixed
remuneration or occasional profit sharing.
4.8. The Beneficiary shall have none of the rights and privileges of the Company’s shareholders, except
those referred to in the Stock Awards Plan, upon the granting of the right to receive the shares that are the
purpose of the respective Program and Agreement. The Beneficiary shall solely have the rights and
privileges inherent in the condition of shareholder after the final transfer of the shares.
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5. Transfer of the shares under the Agreement
5.1. The shares shall be transferred to the Beneficiaries in accordance with the lots and in the period set
forth in the respective Agreement, as long as the conditions established in the Stock Awards Plan, the
Program and the Agreement are met.
5.1.1. It shall be incumbent upon the Company’s management to take all measures required to formalize
the transfer of the shares under the Agreement.
5.2. The Beneficiaries are subject to the rules that restrict the use of privileged information applicable to
publicly-held corporations in general and to those established by the Company.
5.2.1. The Board of Directors or the Committee, as the case may be, may determine the suspension of
receipt of the shares under the Agreement whenever situations occur that, under the law or the applicable
regulations, restrict or prevent the trading of shares by the Beneficiaries.
6. Restrictions on the Transfer of Shares
6.1. The Board of Directors or the Committee, as the case may be, may establish for the Beneficiaries a
minimum lock-up period for the sale, transfer or otherwise the disposal of the Company’s shares received
under the Stock Awards Plan, as well as of those that may be received by them in connection with
bonuses, splitting, subscriptions or any other form of acquisition that does not involve the disbursement of
the Beneficiary’s own funds, or securities that entitle subscription to or acquisition of shares, as long as
such shares or securities have arisen for the Beneficiary from the ownership of shares under the Stock
Awards Plan.
6.1.1. The Board of Directors or the Committee, as the case may be, at its discretion, may exempt the
Beneficiaries from the minimum lock-up period referred to in item Erro! Fonte de referência não
encontrada. above.
6.1.2. Unless otherwise specifically resolved by the Board of Directors or the Committee, as the case may
be, the disposal of the shares in any manner while the period set forth in item Erro! Fonte de
referência não encontrada. above has not elapsed shall result in the Beneficiary’s loss, without any
right to indemnity, of the right to receive all shares not transferred yet to which the Beneficiary would be
entitled under the same Program and Agreement.
6.2. The Beneficiary also undertakes not to encumber the shares, if they are subject to a lock-up period,
and not to create any liens thereon that might prevent the enforcement of the provisions of this Stock
Awards Plan.
6.3. The Company shall register the transfer of shares under the Stock Awards Plan upon its occurrence,
and they shall remain unavailable for the period set forth in the Program, as applicable.
7. Removal or Dismissal for Cause
7.1. Removal from a position due to violation of the duties and attributions of the manager or dismissal of
the Beneficiary due to reasons that could be characterized as just cause, under civil or labor law, as the
case may be, shall result in loss, without any indemnity, of the right to receive all shares that would be
otherwise received under the Stock Awards Plan that have not been transferred yet.
8. Resignation, Removal, Voluntary Termination, Dismissal without Cause or Retirement
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8.1. Unless otherwise resolved by the Board of Directors or the Committee, as the case may be, or by
their delegation, by the Chief Executive Officer, in case of termination of the Beneficiary’s relationship
with the Company due to removal from the position of manager, dismissal without cause, resignation,
resignation or voluntary termination of the Beneficiary not covered by the provisions of item Erro!
Fonte de referência não encontrada., the Beneficiary: (i) shall receive all shares for which the
deadline for transfer by the Company has already elapsed, pursuant to the respective Program or
Agreement; and (ii) shall lose, without any indemnity, the right to receive the shares for which the
deadline for transfer has not elapsed yet.
8.1.1. The Board of Directors or the Committee, as the case may be, or by their delegation, the Chief
Executive Officer, may maintain or bring forward the deadlines for transfer of shares granted to certain
Beneficiaries, wholly or in part, whose relationship with the Company is terminated pursuant to item 8.1.
8.2. In the event of retirement, the Beneficiary: (i) shall receive shares for which the deadline for transfer
by the Company has already elapsed; and (ii) shall lose, without any indemnity, the right to receive the
shares for which the deadline for transfer has not elapsed yet, unless the Beneficiary undertakes not to
provide services during at least twelve (12) months, with or without an employment relationship, to any
companies and institutions that operate, even indirectly, in the same markets as that of the Company.
9. Death and Permanent Disability
9.1. If the Beneficiary dies or becomes permanently disabled in regard to performing his/her duties in the
Company as a manager or an employee, the right to receive the shares granted shall be ensured to the
Beneficiary or his/her heirs and successors, as the case may be. The shares granted shall be transferred,
whether or not the terms set forth in the Agreement have elapsed. In case of death, the heirs and
successors shall receive the shares as set forth in the last will and testament, as established in the probate
proceeding or in an applicable court order.
9.2. In the events set forth in item 9.1, the shares that may be received by the Beneficiary, his/her heirs or
successors shall be free and clear for transfer, sale or disposal at any time.
10. Adjustments
10.1. If the quantity of shares existing in the Company is increased or decreased as a result of share
bonuses, grouping or splitting, proper adjustments shall be made to the quantity of shares under the
Programs and Agreements in relation to those shares not transferred to the Beneficiaries yet.
10.1.1. The adjustments pursuant to the conditions of item 10.1 above shall be made by the Board of
Directors or the Committee, as the case may be, and such resolution shall be final and binding. No
fraction of shares shall be sold or issued in connection with any such adjustments.
10.2. In the event of dissolution, conversion, merger, amalgamation, spin-off or reorganization of the
Company, whereby the Company is not the surviving company or, if it is the surviving company, it no
longer has its shares admitted for trading on the stock exchange, the Agreements of the Programs in
effect, at the discretion of the Board of Directors or the Committee, as the case may be, may: (i) be
transferred to the successor company; or (ii) have their waiting period for transfer accelerated.
10.3. The Beneficiaries shall be notified in reasonable advance about the occurrence of any of the events
referred to in item 10.2.
11. Term of Effectiveness of the Stock Awards Plan
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11.1. The Stock Awards Plan shall become effective upon its approval by the Shareholders Meeting of the
Company and may be discontinued at any time, by resolution of the Board of Directors, without prejudice
to: (i) the prevalence of the restrictions to the tradability of the shares; (ii) the provisions of item 3.4.1;
and (iii) the receipt of the shares under the Programs and Agreements not transferred yet, in which case
the Board of Directors may establish a term for the transfer thereof to the Beneficiaries.
12. Stock Awards to the Members of the Board of Directors
12.1. Stock awards to members of the Board of Directors under this Stock Awards Plan shall comply with
the general provisions set forth in this Stock Awards Plan, especially the provisions of this item 12
(“Granting to the Board”).
12.1.1. The rules set forth in this item 12 shall prevail in case of conflict with the other rules of this Stock
Awards Plan and the provisions of this item 12 shall not be modified by the Board of Directors or the
Committee, in view of the exercise of the duties set forth in items 3.4. and 3.5.
12.2. The members of the Board of Directors are eligible to be beneficiaries of the Award made to the
Board as from the date of the Shareholders Meeting that elects them to the position, or any other term that
may be determined by the Shareholders Meeting.
12.3. The Beneficiaries that are members of the Board of Directors shall be awarded on a yearly basis,
jointly, a total of up to 172,700 shares issued by the Company, to be linearly distributed among the
members of the Board of Directors, pursuant to the resolution of the Shareholders Meeting. The measures
for consummation of the award and for execution of the respective Agreements shall be taken by the
Executive Board.
12.3.1. Any waiver of the right to receive shares by a member of the Board of Directors shall be notified
in writing, mandatorily before the execution of the respective Agreement.
12.4. Any award to the Board shall be made in a single lot, on the same dates of approval of the Programs
to award shares to the other Beneficiaries of this Stock Awards Plan.
12.5. The shares under the Agreements of Beneficiaries that are members of the Board of Directors shall
be transferred to the relevant Beneficiary after 2 years as from the expiration of each term of office as a
member of the Board of Directors in which the Agreement is executed, except for the events described in
item 12.6 below.
12.6. In case of removal, resignation, expiration of the term of office without reelection or expiration of
the term of office due to death or permanent disability of the Beneficiary, the rules set forth in sub-items
of this item 12.6 shall apply, to the detriment of the provisions of items 7, 8 and 9 of this Stock Awards
Plan.
12.6.1. In case of removal due to violation of their duties and attributions, pursuant to the commercial law
or a reason equivalent to just cause under the labor law, the right to receive all shares not transferred yet
shall be immediately forfeited and without any indemnity.
12.6.2. In case of resignation, the right to receive the shares under the Program approved for the year of
the term of office in which the resignation takes place shall be immediately forfeited, without any
indemnity. All other shares for which the right has been previously granted shall be transferred to the
Beneficiary with due regard for the respective terms of transfer, as established in item 12.5. In such event,
the term for transfer shall be counted as though the Beneficiary had not resigned, i.e., the share shall be
transferred after 2 years as from the date on which the term of office would have otherwise expired, had
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the Beneficiary not resigned.
12.6.3. In case of expiration of the term of office without reelection, all shares shall be transferred to the
Beneficiary, with due regard for the respective terms for transfer, as set forth in item 12.5 above.
12.6.4. In case of expiration of the term of office due to death or permanent disability, all shares awarded
that have not been transferred to the Beneficiary yet shall be transferred to him/her or to his/her heirs and
successors, as the case may be, and the right to the shares shall be apportioned among the heirs or
successors as provided for by the last will and testament, as established in the probate proceeding or the
applicable court order.
13. Additional Obligations
13.1. Adhesion. The execution of the Agreement implies express, irrevocable and irreversible acceptance
of all provisions of the Stock Awards Plan and the Program by the Beneficiary, who undertakes to fully
comply therewith.
13.2. Specific Performance. The obligations set forth in the Stock Awards Plan, in the Programs and in
the Agreement are undertaken on an irrevocable basis and shall be valid as an extrajudicial execution
instrument under the civil procedural law, being binding upon the parties and their respective successors
at any time and on any account whatsoever. The parties establish that said obligations are subject to
specific performance, as provided for by articles 466-A and 466-C et seq of the Code of Civil Procedure.
13.3. Assignment. The rights and obligations arising out of the Stock Awards Plan and the Agreement
shall not be assigned or transferred by either party, wholly or in part, or given as a guarantee of any
obligations, without the prior and written consent of the other party.
13.4. Novation. It is expressly agreed that the failure of either party to exercise any right, power, resource
or privilege ensured by law, by the Stock Awards Plan or by the Agreement shall not be deemed
novation, nor shall any forbearance in relation to the delayed compliance with any of the obligations by
either party prevent the other party, at its sole discretion, from exercising such rights, powers, resources
or privileges at any time, which are cumulative and non-excluding in relation to any rights, powers,
resources or privileges provided for by law.
13.5. Annotation. The wording of the Agreement is valid as a Shareholders Agreement and shall be
annotated on the margin of the corporate registrations of the Company for all purposes of article 118 of
Law No. 6404/76.
13.6. Jurisdiction. The parties elect the courts of the judicial district of the City of São Paulo to resolve
any disputes that may arise in relation to the Stock Awards Plan, the Programs and/or the Agreements and
waive any other courts, however privileged they may be.
13.7. Omitted Cases. Any omitted cases shall be regulated by the Board of Directors, after consultation
with the Shareholders Meeting as it may be deemed convenient. Any share granted under the Stock
Awards Plan is subject to all provisions and conditions established herein, which shall prevail in case of
any conflict with the provisions of any agreement or document referred to herein.
* * *
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2. Inform the primary characteristics of the proposed plan, identifying:
a. Potential beneficiaries
The potential beneficiaries of the proposed Stock Awards Plan ("Stock Awards Plan") are the
managers, including the members of the Board of Directors and employees of the Company and
of companies controlled directly or indirectly by it. In the case of members of the Board of
Directors, the Stock Awards Plan states that all members of this body shall be beneficiaries,
subject to the specific conditions highlighted in the Stock Awards Plan itself. In the context of
other managers and employees, the Board of Directors or the Company's Compensation
Committee ("Committee"), as applicable, shall choose, through the Stock Awards Programs
("Programs") and in accordance with the criteria established for the election of beneficiaries,
those entitled to the award of shares.
b. Maximum number of shares to be awarded and maximum number of shares covered by
the plan
The maximum number of shares to be awarded under the Stock Awards Plan and throughout its
term may cover the maximum limit of the shares representing up to 2.5% of the Company's
capital stock on the respective award date, subject to the conditions provided in the Plan and in
item "c" above. Based on the number of shares currently comprising the Company's capital stock,
the total number of shares covered by the Plan shall be 47,500,000 shares.
The shares effectively transferred under the Plan proposed herein and the remaining balances of
other plans in force on the Stock Awards Plan approval date shall not be included in the limit
mentioned above. In the event of the award to other managers and employees of the Company,
the Board of Directors or the Committee, as applicable, shall define through Programs, annually,
the total number of shares that may be awarded to the Beneficiaries according to the results
achieved by the Company in compliance with objective performance goals, as determined by the
Board of Directors. The total shares to be awarded in a fiscal year may not exceed a maximum of
0.8% of the total shares of the capital stock of the Company verified on the award date.
In the case of the Board of Directors, a total of up to 172,700 Company shares will be awarded
annually to the beneficiaries, which shall be linearly distributed between the members of the
Board of Directors, pursuant to the conditions established in the item 12 of the Stock Awards
Plan.
For purposes of this proposed Stock Awards Plan, the Company shall use the existing treasury
shares, subject to the rules of the CVM.
c. Conditions of purchase
The Stock Awards Plan has, among others, the purpose of awarding Company shares held in
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treasury to certain beneficiaries by virtue of compliance with certain goals determined in the
Stock Awards Agreements and Plans to be entered into between the Company and the
beneficiary ("Agreements"), related to its activities performed at the Company or its controlled
companies, as applicable.
In the case of the award to other managers and employees, the Board of Directors or the
Committee, as applicable, shall create periodically, Plans that shall define:
(i) Beneficiaries;
(ii) the total number of Company shares subject of the award, subject to the
annual limit of 0.8% of the Company's capital and the Company's
performance conditions in the fiscal year in question;
(iii) the criteria for election of Beneficiaries and determination of the number
of shares to be allocated, considering as conditions, the achievement of
goals by the Beneficiaries and the individual evaluation of performance
and potential;
(iv) the division of shares into lots, provided that, for each Program, a total
minimum term of three (3) years between the stock award date of that
Program and the last date for transfer of shares awarded to the same
Program shall be respected. Furthermore, a minimum waiting period of
twelve months shall be respected between: i) a Program award date and
the first transfer date of any lot of shares from that Program, and (ii)
between each of the lots of shares of that Program, after the first transfer.
(v) waiting periods for performing the transfer of shares;
(vi) any restrictions on transfer of shares received by the Beneficiaries; and
(vii) any provisions regarding penalties.
d. Detailed criteria for determining the exercise price
Not applicable. The Stock Awards Plan has, among others, the purpose of granting Company
shares held in treasury to certain beneficiaries upon achieving certain goals determined in the
Programs and Agreements, related to their activities performed at the Company or its controlled
companies. This is, therefore, not a stock option plan pursuant to Art. 168, paragraph 3 of Law
No. 6404/76, but remuneration based on the delivery of the shares held in treasury, directly to
beneficiaries, by prior approval of the Securities Commission ("CVM").
e. Criteria for determining the exercise period
In the case of the other managers and employees, the shares shall be awarded at the discretion of
the Board of Directors or the Committee, as applicable, according to the lots, terms and periods
fixed in each Program and in the respective Agreements, provided that all the conditions
established are observed and that for each Program, a total minimum term of three (3) years
between the stock award date of that Program and the last stock transfer date for the same
Program, shall be respected. Furthermore, a minimum waiting period of twelve (12) months shall
be respected between i) the award date of one Program and the first date of the transfer of each
lot of shares from that Program, and ii) between each one of the transfer dates of lots of shares
from that Program, after the first transfer.
In the case of the Board of Directors, the shares subject of the Beneficiary Agreement shall be
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transferred to the respective Beneficiary after two (2) years after the end of each term as a
member of the Board of Directors in which the Agreement was executed.
Note that there is no provision in the Plan for the exercise periods, but rather waiting periods.
f. Form of settlement of shares
As mentioned in item "d" above, the Stock Awards Plan has, among others, the objective to
award shares of the Company held in treasury to certain beneficiaries upon prior authorization of
CVM and compliance with goals related to its activities performed at the Company or its
controlled companies, as applicable, without financial consideration per share awarded. Thus,
once the conditions established in the Stock Awards Plan, Programs and Agreement are fulfilled
and once authorized by CVM, the beneficiary shall be entitled to receive such shares, and the
Company's management shall take all measures necessary to formalize the respective transfer.
The rules of the Stock Awards Plan also provide that the Company may determine the temporary
suspension of the receipt of the shares subject of the respective Program and/or Agreement,
whenever situations arise that, under the law or regulations, restrict or prohibit the trading of
shares by the beneficiaries.
g. Criteria and events that, when present, will cause the suspension, amendment or
termination of the plan
The Stock Awards Plan may be amended or terminated at any time by the Board of Directors or
by the Committee, as appropriate, without prejudice to the prevalence of restrictions on
transferability of shares, and without modifying rights and obligations of any agreement in force
on the awarding shares and the rules relating to the awarding of stock to members of the Board of
Directors pursuant to the Stock Awards Plan.
The Stock Awards Plan further provides that in the event of dissolution, transformation, merger,
spin-off or reorganization of the Company after which the Company is not the surviving
company or, if it is the surviving company, ceases to have its shares admitted for trading on the
stock exchange, the Agreements or the Programs in effect, at the discretion of the Board of
Directors or by Committee proposal, as applicable, may be transferred to the successor company
or have their waiting periods accelerated.
h. Restrictions on transfers of shares
The Stock Awards Plan determines that the Board of Directors or the Committee, as the case may
be, may establish for the Beneficiaries a minimum lock-up period for sale, transfer, or, in any
form, disposition of the Company's shares received in the scope of the Stock Awards Plan, as
well as those that may be acquired by virtue of stock dividends, splits, subscriptions or any other
form of acquisition that does not involve the disbursement of the beneficiary's own resources or
securities that give the right to subscribe for or purchase shares, provided that such shares or
securities have arisen for the beneficiary from ownership of the shares subject of the Stock
Awards Plan. Unless otherwise decided by the Board of Directors or the Committee, as
appropriate, the sale of shares, in any way, while the period referred to above has not lapsed,
shall give rise to the beneficiary’s forfeiture without compensation of the right to receive all
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shares to which it is entitled, pursuant to the terms of the respective Program and Agreement.
The beneficiary shall also, under the Stock Awards Plan, not encumber the shares, if subject to a
lock-up period, and not establish any liens that may impede the execution of the provisions in the
Stock Awards Plan.
3. Justify the proposed plan, explaining:
a. Main objectives of the plan
Stimulate the expansion of the Company and success in the performance of its corporate purpose
and interest of its shareholders, aligning interests by allowing senior executives and employees
to become shareholders of the Company by encouraging their integration with the Company and
their shareholders as well as enabling the Company and its subsidiaries to attract and retain high
level employees and managers.
Currently, the Company already has a long-term incentive plan through the Stock Option Plan. It
has been observed over the past few years that the model currently adopted can, to some extent,
given the market conditions, become less effective in aligning the interests of key Company
professionals.
Thus, the adoption of the Stock Awards Plan aims to bring more efficiency to this important part
of the total remuneration of beneficiaries and strengthen the alignment of interests between
managers, employees and shareholders.
It is worth clarifying that in case the Stock Awards Plan is approved and implemented, the
Company shall no longer grant new stock options under the Stock Options Plan, maintaining the
current rights and obligations.
b. Manner in which the plan contributes to these objectives
The granting of shares under the Stock Awards Plan allows beneficiaries to feel encouraged
when becoming shareholders of the Company, by virtue of meeting goals related to the
performance of their activities. As a result, they will be encouraged to perform their activities in
the best interests of the Company and therefore its shareholders, creating value for the latter. At
the same time, the award of stock under the Stock Awards Plan is structured to allow for
potential gains from the sale of such shares to be realized, if applicable, in the long term, as
determined by the Board of Directors or Committee, and if the beneficiary remains bound to the
Company, thus acting to stimulate its permanence, in order to achieve the objective of retaining
high level managers and employees of the Company and its directly or indirectly controlled
companies.
c. How is the plan inserted in the company's remuneration policy
The Stock Awards Plan provides a mechanism of long-term variable remuneration from the
Company, underscoring that the majority of the Company's executive compensation is variable,
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with special attention to long-term incentives.
The focus on long-term variable remuneration aims to accompany market practices and offer
attractive packages which on the other hand care for the Company's interests in the most efficient
manner. The Stock Awards Plan proposed here aims to strengthen the focus on this form of
remuneration, offering the possibility of competitive return, and, on the other hand, requiring a
strong demonstration of commitment by the beneficiaries, which should comply with the goals
related to the performance of its activities, in a manner established by the respective Programs
and Contracts.
d. How does the plan align with the interests of the beneficiaries and the company in the
short, medium and long terms
The Stock Awards Plan foresees mechanisms that allow the alignment of interests of
beneficiaries over different time horizons, which shall be done especially through the waiting
periods, during which time the shares cannot be transferred to the beneficiaries and the lock-up
period for the shares awarded. The division of the shares into lots, with the transfer over time,
serves as an incentive for retaining professionals during these periods, allowing them to become
shareholders of the Company with progressively greater equity interest and to earn a profit that
will be greater the longer they stay at the Company and work there to create value and
satisfactory results. Moreover, the restriction on transfer of shares allows these interests to be
aligned for a long period of time, so that any gain can only be realized after the expiration of
such period.
4. Estimate the company's expenses from the plan, pursuant to the accounting rules that address
this issue
The maximum number of shares to be awarded under the Stock Awards Plan and throughout its
term may cover the maximum limit of the shares representing up to 2.5% of the Company's
capital stock on the respective award date, subject to the conditions provided in the Plan and in
item "c" above. Based on the number of shares currently comprising the Company's capital, the
total number of shares covered by the Plan shall be 47,500,000 shares.
Annually, in the case of managers and employees, the rules of the Stock Awards Plan determine
that the Board of Directors or the Committee, as appropriate, shall establish periodically the
Programs, in which the maximum annual award limit of up to 0.8% of the Company's capital
stock shall be established, subject to the performance conditions for the fiscal year. Based on the
number of shares currently comprising the Company's capital, the total number of shares covered
by the Plan shall be 15,200,000 shares per year.
In the context of the Board of Directors, the maximum annual award limit is up to 172,700
shares issued by the Company. In this sense, each award of shares under the Awards Plan shall
represent, throughout the duration of each Program, expenses to an amount equal to the market
value of the shares awarded. It is worth noting that if the proposed Stock Awards Plan is
approved at the Shareholders Meeting, and after approval by CVM of the use of treasury shares,
the first shares awarded for fiscal year 2014 under this Plan shall occur only in January 2015
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and, therefore, shall take effect in fiscal year 2015.
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EXHIBIT II
COMPARATIVE TABLE OF THE PROPOSALS FOR AMENDMENT OF THE BYLAWS
CURRENT BYLAWS AMENDED BYLAWS AMENDMENT JUSTIFICATION
BYLAWS OF BM&FBOVESPA S.A. –
BOLSA DE VALORES, MERCADORIAS e FUTUROS
BYLAWS OF BM&FBOVESPA S.A. –
BOLSA DE VALORES, MERCADORIAS e FUTUROS TN: Spelling corrections to the Portuguese
language not reproduced herein
CHAPTER I CHAPTER I
NAME, HEADQUARTERS, VENUE, PURPOSE AND
DURATION
NAME, HEADQUARTERS, VENUE, PURPOSE AND
DURATION
Article 1. BM&FBOVESPA S.A. – BOLSA DE VALORES,
MERCADORIAS E FUTUROS (“Company”) is a corporation
governed by these Bylaws and by applicable law.
Article 1. BM&FBOVESPA S.A. – BOLSA DE VALORES,
MERCADORIAS E FUTUROS (“Company”) is a corporation
governed by these Bylaws and by applicable law.
Sole paragraph. The shares of BM&FBOVESPA S.A. – Bolsa
de Valores, Mercadorias e Futuros (“BM&FBOVESPA”), the
Brazilian Securities, Commodities and Futures Exchange,
have been listed to trade on the Stock Exchange special
listing segment named Novo Mercado. Accordingly, the
Company, the shareholders, the Directors and Officers
and the Fiscal Council members (if the council is active)
are bound by the Novo Mercado Listing Rules (“Novo
Mercado Listing Rules”)
Sole Paragraph. The shares of BM&FBOVESPA S.A. – Bolsa
de Valores, Mercadorias e Futuros (“BM&FBOVESPA”), the
Brazilian Securities, Commodities and Futures Exchange,
have been listed to trade on the Stock Exchange special
listing segment named Novo Mercado. Accordingly, the
Company, the shareholders, the Directors and Officers
and the Fiscal Council members (if the council is active)
are bound by the Novo Mercado Listing Rules (“Novo
Mercado Listing Rules”)
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Article 2. The Company has registered office and jurisdiction
in the city of São Paulo, state of São Paulo. Upon a decision
of the Executive Management Board, the Company may
open and close branches, offices or other establishments and
facilities anywhere in Brazil or abroad.
Article 2. The Company has registered office and jurisdiction
in the city of São Paulo, state of São Paulo. Upon a decision
of the Executive Management Board, the Company may
open and close branches, offices or other establishments and
facilities anywhere in Brazil or abroad.
Article 3. The Company’s corporate purpose is to conduct or
hold shares in the capital of companies undertaking the
following activities:
Article 3. The Company’s corporate purpose is to conduct or
hold shares in the capital of companies undertaking the
following activities:
I – Surveillance of exchange markets for the organization,
development and maintenance of free and open markets for
the trading of all types of securities, titles or contracts that
have as references or are backed to spot or future indexes,
indicators, rates, merchandise, currencies, energies,
transportation, commodities and other assets or rights
directly or indirectly related to them, in terms of cash or
future settlement;
I – Surveillance of exchange markets for the organization,
development and maintenance of free and open markets for
the trading of all types of securities, titles or contracts that
have as references or are backed to spot or future indexes,
indicators, rates, merchandise, currencies, energies,
transportation, commodities and other assets or rights
directly or indirectly related to them, in terms of cash or
future settlement;
II – Maintenance of systems for the trade and auction and
special operations of securities, derivatives, rights and titles
in the organized exchange market or in the over-the-counter
market;
II – Maintenance of systems for the trade and auction and
special operations of securities, derivatives, rights and titles
in the organized exchange market or in the over-the-counter
market;
III – Rendering of registration, clearing and physical and
financial settlement services, through an internal body or a
company specially incorporated for this purpose, as main
and guarantor counterparty for the final clearance or not,
according to the law in effect and Company’s regulations:
III – Rendering of registration, clearing and physical and
financial settlement services, through an internal body or a
company specially incorporated for this purpose, as main
and guarantor counterparty for the final clearance or not,
according to the law in effect and Company’s regulations:
(a) of the transactions carried out and/or registered in any of
the systems listed in items “I” and “II” above; or
(a) of the transactions carried out and/or registered in any of
the systems listed in items “I” and “II” above; or
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(b) of the transactions carried out and/or registered with
other exchanges, markets or trading systems,
(b) of the transactions carried out and/or registered with
other exchanges, markets or trading systems,
IV – Rendering of services of centralized depositary and
fungible and non-fungible custody of commodities, securities
and any other physical and financial assets;
IV – Rendering of services of centralized depositary and
fungible and non-fungible custody of commodities, securities
and any other physical and financial assets;
V – Rendering of customization, classification, analysis,
quotation, preparation of statistics, training of personnel,
preparation of studies, publications, information, library and
software development services related to the Company’s
interests and the participants of the markets under the
Company’s direct or indirect surveillance and its interests;
V – Rendering of customization, classification, analysis,
quotation, preparation of statistics, training of personnel,
preparation of studies, publications, information, library and
software development services related to the Company’s
interests and the participants of the markets under the
Company’s direct or indirect surveillance and its interests;
VI – Rendering of technical, administrative, and
management support for market development, as well as
undertaking of educational, promotional and publishing
activities related to its corporate purpose and to the markets
which are under the Company’s surveillance;
VI – Rendering of technical, administrative, and
management support for market development, as well as
undertaking of educational, promotional and publishing
activities related to its corporate purpose and to the markets
which are under the Company’s surveillance;
VII – Undertaking of other similar or related activities
expressly authorized by the Securities Commission; and
VII – Undertaking of other similar or related activities
expressly authorized by the Securities Commission; and
VIII – Holding shares in the capital of other companies or
associations, headquartered in Brazil or abroad, whether as a
partner, shareholder or associate, under the regulations in
effect.
VIII – Holding shares in the capital of other companies or
associations, headquartered in Brazil or abroad, whether as a
partner, shareholder or associate, under the regulations in
effect.
Sole Paragraph. Within the powers that are conferred to it by
Law 6,385/1976 and by the regulations in effect, the
Company must:
Sole Paragraph. Within the powers that are conferred to it by
Law 6,385/1976 and by the regulations in effect, the
Company must:
(a) issue regulations relating to the granting of Access
Permits to different trading, registration and settlement
(a) issue regulations relating to the granting of Access
Permits to different trading, registration and settlement
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systems under the Company’s surveillance or by
companies that are controlled by it (“Access Permits”),
establishing the terms, conditions and procedures for the
granting of such authorizations (“Access Regulation”);
systems under the Company’s surveillance or by
companies that are controlled by it (“Access Permits”),
establishing the terms, conditions and procedures for the
granting of such authorizations (“Access Regulation”);
(b) establish rules safekeeping equitable commercial and
trading principles and high ethical standards for people
who act in the markets under the direct or indirect
surveillance of the Company, as well as to regulate the
transactions and decide operating questions involving
the holders of Access Permits to the same markets;
(b) establish rules safekeeping equitable commercial and
trading principles and high ethical standards for people
who act in the markets under the direct or indirect
surveillance of the Company, as well as to regulate the
transactions and decide operating questions involving
the holders of Access Permits to the same markets;
(c) regulate the activities of the holders of Access Permits in
the systems and markets under the Company’s
surveillance;
(c) regulate the activities of the holders of Access Permits in
the systems and markets under the Company’s
surveillance;
(d) establish mechanisms and rules to mitigate the risk of
default of obligations by the holders of Access Permits, as
to the transactions undertaken and/or registered in any of
the Company’s trading, registration and clearing
systems;
(d) establish mechanisms and rules to mitigate the risk of
default of obligations by the holders of Access Permits, as
to the transactions undertaken and/or registered in any of
the Company’s trading, registration and clearing
systems;
(e) monitor the transactions traded and/or registered in any
of the Company’s trade, registration, clearing and
settlement systems, as well as all of those regulated by it;
(e) monitor the transactions traded and/or registered in any
of the Company’s trade, registration, clearing and
settlement systems, as well as all of those regulated by it;
(f) monitor the activities of the holders of Access Permits, as
participants and/or intermediaries to the transactions
undertaken and/or registered in any of the trade,
registration and clearing systems under the surveillance
of the Company, as well as all those regulated by it; and
(f) monitor the activities of the holders of Access Permits, as
participants and/or intermediaries to the transactions
undertaken and/or registered in any of the trade,
registration and clearing systems under the surveillance
of the Company, as well as all those regulated by it; and
(g) impose penalties to those who violate legal, regulatory
and operating rules, under the surveillance of the
(g) impose penalties to those who violate legal, regulatory
and operating rules, under the surveillance of the
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Company. Company.
Article 4. The Company has an unlimited duration. Article 4. The Company has an unlimited duration.
CHAPTER II CHAPTER II
CAPITAL STOCK, SHARES AND SHAREHOLDERS CAPITAL STOCK, SHARES AND SHAREHOLDERS
Article 5. The capital stock of the Company amounts to
R$2,540,239,563.88, representing 1,980,000,000 common
registered shares, fully paid-in and with no par value. The
Company shall not be permitted to issue preferred shares or
participation certificates.
Article 5. The capital stock of the Company amounts to
R$2,540,239,563.88, representing 1,9800,000,000 common
registered shares, fully paid-in and with no par value. The
Company shall not be permitted to issue preferred shares or
participation certificates.
CONTINGENT ON THE BOARD APPROVING THE
CANCELLATION OF 80,000,000 TREASURY
SHARES.
Article 6. All of the shares issued by the Company are book-
entry and deposited with a financial institution authorized
by the Brazilian Securities Commission (Comissão de Valores
Mobiliários), or CVM, in the name of their holders.
Article 6. All of the shares issued by the Company are book-
entry and deposited with a financial institution authorized
by the Brazilian Securities Commission (Comissão de Valores
Mobiliários), or CVM, in the name of their holders.
Sole paragraph. The cost of the transfer and registration, as
well as the cost of the service related to book-entry shares
can be charged directly to the shareholder by the transfer
agent, as may come to be defined in the book-entry share
contract.
Sole paragraph. The cost of the transfer and registration, as
well as the cost of the service related to book-entry shares
can be charged directly to the shareholder by the transfer
agent, as may come to be defined in the book-entry share
contract.
Article 7. Each common share entitles the holder to one vote
in decisions taken in Annual or Extraordinary Shareholders’
Meetings, provided that, due regard given to the provision
under item (d) of paragraph 5 of Article 70, no shareholder or
Shareholder Group (as defined under Article 73) shall be
entitled to vote shares in excess of 7% of the total number of
shares issued by the Company.
Article 7. Each common share entitles the holder to one vote
in decisions taken in Annual or Extraordinary Shareholders’
Meetings, provided that, due regard given to the provision
under item (d) of paragraph 5 of Article 70, no shareholder or
Shareholder Group (as defined under Article 73) shall be
entitled to vote shares in excess of 7% of the total number of
shares issued by the Company.
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Paragraph 1. For purposes of the voting cap established in
the main provision, and without prejudice to the provision
under paragraph 2 of this Article, where two or more
shareholders agree a voting or other agreement for concerted
exercise of voting rights, each of the signatory parties thereto
shall be deemed to constitute, and vote, as a Shareholder
Group, subject therefore to the voting cap established under
the main provision of this Article.
Paragraph 1. For purposes of the voting cap established in
the main provision, and without prejudice to the provision
under paragraph 2 of this Article, where two or more
shareholders agree a voting or other agreement for concerted
exercise of voting rights, each of the signatory parties thereto
shall be deemed to constitute, and vote, as a Shareholder
Group, subject therefore to the voting cap established under
the main provision of this Article.
Paragraph 2. The shareholders shall not permitted to agree
preconcerted voting arrangements (whether or not under a
shareholders’ agreement filed with the Company) whereby
the resulting voting pool exceeds the individual voting cap
set forth in the main provision of this Article.
Paragraph 2. The shareholders shall not permitted to agree
preconcerted voting arrangements (whether or not under a
shareholders’ agreement filed with the Company) whereby
the resulting voting pool exceeds the individual voting cap
set forth in the main provision of this Article.
Paragraph 3. In a shareholders’ meeting, the chair shall be
responsible for enforcing the provisions of this Article, and
for declaring the number of votes each shareholder or
Shareholder Group is entitled to cast when polled.
Paragraph 3. In a shareholders’ meeting, the chair shall be
responsible for enforcing the provisions of this Article, and
for declaring the number of votes each shareholder or
Shareholder Group is entitled to cast when polled.
Paragraph 4. Any vote in excess of the voting cap established
in this Article shall be disregarded.
Paragraph 4. Any vote in excess of the voting cap established
in this Article shall be disregarded.
Article 8. Pursuant to a decision of the Board of Directors,
the Company is authorized to increase the shares of capital
stock up to a limit of two billion five hundred million
(2,500,000,000) common shares, irrespective of amending
these bylaws.
Article 8. Pursuant to a decision of the Board of Directors,
the Company is authorized to increase the shares of capital
stock up to a limit of two billion five hundred million
(2,500,000,000) common shares, irrespective of amending
these bylaws.
Paragraph 1. In the event contemplated under the main
provision of this Article, the Board of Directors shall
determine the issue price and number of shares in the issue,
as well as the payment date and payment terms.
Paragraph 1. In the event contemplated under the main
provision of this Article, the Board of Directors shall
determine the issue price and number of shares in the issue,
as well as the payment date and payment terms.
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Paragraph 2. Provided it shall do so within the limit of the
authorized share capital, the Board of Directors may also: (i)
decide on the issuance of warrants; (ii) pursuant to a plan
approved at a Shareholders’ Meeting, grant stock options to
management members and employees of the Company or
any subsidiary, and to natural persons providing services to
any of the latter two, whereas limiting or suspending the
preemptive rights of shareholders; and (iii) increasing the
capital by approving the capitalization of profits or reserves,
whether or not by issuing bonus shares
Paragraph 2. Provided it shall do so within the limit of the
authorized share capital, the Board of Directors may also: (i)
decide on the issuance of warrants; (ii) pursuant to a plan
approved at a Shareholders’ Meeting, grant stock options to
management members and employees of the Company or
any subsidiary, and to natural persons providing services to
any of the latter two, whereas limiting or suspending the
preemptive rights of shareholders; and (iii) increasing the
capital by approving the capitalization of profits or reserves,
whether or not by issuing bonus shares.
Article 9. In the event a shareholder defaults on paying the
issue price for shares it has subscribed, the debt will have to
be paid as accruing default interest at a rate of 1% per month,
plus adjustment for inflation calculated (in the shortest
legally permissible time interval) pursuant to the General
Market Price Index (IGP-M), and a 10% fine over the unpaid
principal, without prejudice to other applicable legal remedies.
Article 9. In the event a shareholder defaults on paying the
issue price for shares it has subscribed, the debt will have to
be paid as accruing default interest at a rate of 1% per month,
plus adjustment for inflation calculated (in the shortest
legally permissible time interval) pursuant to the General
Market Price Index (IGP-M), and a 10% fine over the unpaid
principal, without prejudice to other applicable legal remedies.
Article 10. Every shareholder or Shareholder Group is
required to disclose by notice to the Company (which shall
include the information required under Article 12 of CVM
Ruling No. 358/2002) any share purchases which in the
aggregate result in ownership interest in excess of 5% of the
shares of capital stock. Thereafter, a similar disclosure
requirement applies with regard to subsequent purchases of
additional lots of shares representing over 2.5% of the shares
of capital stock (or any multiples thereof).
Article 10. Every shareholder or Shareholder Group is
required to disclose by notice to the Company (which must
include the information required under Article 12 of CVM
Ruling No. 358/2002) any share purchases which in the
aggregate result in ownership interest in excess of 5% of the
shares of capital stock. Thereafter, a similar disclosure
requirement applies to subsequent purchases of additional
lots of shares in the aggregate representing over 2.5% of the
shares of capital stock (or any multiple thereof).
Paragraph 1. If the aforementioned share acquisitions are
aimed to bring about, or do lead to, a change of control or a
change in the Company’s management structure, or
otherwise trigger a tender offer requirement (per CHAPTER
Paragraph 1. If the aforementioned share acquisitions are
aimed to bring about, or do lead to, a change of control or a
change in the Company’s management structure, or
otherwise trigger a tender offer requirement (per CHAPTER
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VIII and applicable law and regulations), the acquiring
shareholder or Shareholder Group shall also be required to
release and disclose such information to the market
(including the information required under Article 12 of CVM
Ruling No. 358/2002) by means of publishing announcements
in the same widely-circulated newspapers customarily used
by the Company for its own publications.
VIII and applicable law and regulations), the acquiring
shareholder or Shareholder Group shall also be required to
release and disclose such information to the market
(including the information required under Article 12 of CVM
Ruling No. 358/2002) by means of publishing announcements
in the same widely-circulated newspapers customarily used
by the Company for its own publications.
Paragraph 2. The obligations foreseen in this Article shall
likewise apply to holders of securities convertible into shares,
warrants and purchase options convertible, exercisable or
exchangeable for shares representing the same levels of
ownership interest as set forth above.
Paragraph 2. The obligations foreseen in this Article shall
likewise apply to holders of securities convertible into shares,
warrants and purchase options convertible, exercisable or
exchangeable for shares representing the same levels of
ownership interest as set forth above.
Paragraph 3. The shareholders or Shareholder Groups shall
also be required to disclose (per the main provision of this
Article) any share sale or divestment by which their holdings
in shares and other Company securities set forth above are
reduced by 5% of the total number shares of stock.
Paragraph 3. The shareholders or Shareholder Groups shall
also be required to disclose (per the main provision of this
Article) any share sale or divestment by which their holdings
in shares and other Company securities set forth above are
reduced by 5% of the total number shares of stock.
Paragraph 4. The breach of the provisions of this Article shall
subject the breaching party(ies) to the penalty provided for in
Article 16, item (i), and in Article 18.
Paragraph 4. Any violation of the provisions of this Article
shall be subject to the penalties set forth under Article 16,
item (i), and Article 18 of these Bylaws.
Paragraph 5. The Investor Relations Officer shall be required
to send (as soon as practicable) copies of such notices to the
CVM and the stock exchanges on which Company securities
are listed to trade.
Paragraph 5. The Investor Relations Officer shall be required
to send (as soon as practicable) copies of such notices to the
CVM and the stock exchanges on which Company securities
are listed to trade.
Article 11. The issuance of new shares, debentures
convertible into shares or warrants placed by sale on a stock
exchange, public subscription or share swap in tender offers
for the acquisition of control under Articles 257 through 263
of Brazilian Corporate Law*, or, also, under a special tax
Article 11. The issuance of new shares, debentures
convertible into shares or warrants placed by sale on a stock
exchange, public subscription or share swap in tender offers
for the acquisition of control under Articles 257 through 263
of Brazilian Corporate Law*, or, also, under a special tax
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incentive law, can take place without the shareholders being
given a preemptive right in the subscription or with a
reduction in the minimum period provided for in law to
exercise it.
incentive law, can take place without the shareholders being
given a preemptive right in the subscription or with a
reduction in the minimum period provided for in law to
exercise it.
CHAPTER III CHAPTER III
SHAREHOLDERS’ MEETING SHAREHOLDERS’ MEETING
Article 12. The shareholders shall meet ordinarily within the
first four months after the year closes to decide on the
matters set forth under Article 132 of Brazilian Corporate
Law*, and, extraordinarily, whenever the interests of the
Company so require.
Article 12. The shareholders shall meet ordinarily within the
first four months after the year closes to decide on the
matters set forth under Article 132 of Brazilian Corporate
Law*, and, extraordinarily, whenever the interests of the
Company so require.
Paragraph 1. The Shareholders’ Meeting has the authority to
decide on all acts related to the Company, as well as to
decide in the best interests of the Company.
Paragraph 1. The Shareholders’ Meeting has the authority to
decide on all acts related to the Company, as well as to
decide in the best interests of the Company.
Paragraph 2. The Annual Shareholders’ Meeting and the
Extraordinary Shareholders’ Meeting can be called
cumulatively and held at the same place, date and time, and
recorded in a single set of minutes.
Paragraph 2. The Annual Shareholders’ Meeting and the
Extraordinary Shareholders’ Meeting can be called
cumulatively and held at the same place, date and time, and
recorded in a single set of minutes.
Paragraph 3. A Shareholders’ Meeting shall be called by the
Board of Directors on the decision of the majority of its
members or, also, in the cases provided for in these Bylaws
and in the sole paragraph of Article 123 of Brazilian
Corporate Law*.
Paragraph 3. A Shareholders’ Meeting shall be called by the
Board of Directors on the decision of the majority of its
members or, also, in the cases provided for in these Bylaws
and in the sole paragraph of Article 123 of Brazilian
Corporate Law*.
Paragraph 4. The documents pertinent to the matter to be
decided on at the Shareholders’ Meetings must be made
Paragraph 4. The documents pertinent to the matter to be
decided on at the Shareholders’ Meetings must be made
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available to the shareholders, at the headquarters of the
Company, on the date of the publication of the first call
notice, except in those cases in which the law or a regulation
in effect requires that they be made available for a longer
period.
available to the shareholders, at the headquarters of the
Company, on the date of the publication of the first call
notice, except in those cases in which the law or a regulation
in effect requires that they be made available for a longer
period.
Paragraph 5. The Shareholders’ Meeting shall be held, on the
first call, with the presence of shareholders representing at
least 25% of the capital stock, except when the law requires a
higher quorum; and, on the second call, with any number of
shareholders.
Paragraph 5. The Shareholders’ Meeting shall be held, on the
first call, with the presence of shareholders representing at
least 25% of the capital stock, except when the law requires a
higher quorum; and, on the second call, with any number of
shareholders.
Paragraph 6. A quorum to convene the extraordinary
shareholders’ meeting on first call for the purpose of
amending these Bylaws shall require attendance by holders
of record representing at least two-thirds of the issued and
outstanding shares of capital stock, provided the meeting
may convene on second call with any number of attending
shareholders.
Paragraph 6. A quorum to convene the extraordinary
shareholders’ meeting on first call for the purpose of
amending these Bylaws shall require attendance by holders
of record representing at least two-thirds of the issued and
outstanding shares of capital stock, provided the meeting
may convene on second call with any number of attending
shareholders.
Paragraph 7. Shareholders’ Meetings shall be presided over
by the Chair of the Board of Directors or by a person
appointed by the Chair. In the absence of the Chair, a
Shareholders’ Meeting shall be presided over by the Vice
Chair or an appointee. The chair of the Shareholders’
Meeting shall appoint one of the attendees to act as secretary.
Paragraph 7. Shareholders’ Meetings shall be presided over
by the Chair of the Board of Directors or by a person
appointed by the Chair. In the absence of the Chair, a
Shareholders’ Meeting shall be presided over by the Vice
Chair or an appointee. The chair of the Shareholders’
Meeting shall appoint one of the attendees to act as secretary.
Paragraph 8. It shall be the exclusive responsibility of the
Chair of the Meeting, subject to the rules established in these
Bylaws, to make any decision regarding the number of votes
of each shareholder, which decision may be appealed to the
Shareholders’ Meeting itself, in which decision the interested
party shall not vote.
Paragraph 8. It shall be the exclusive responsibility of the
Chair of the Meeting, subject to the rules established in these
Bylaws, to make any decision regarding the number of votes
of each shareholder, which decision may be appealed to the
Shareholders’ Meeting itself, in which decision the interested
party shall not vote.
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Article 13. Before a shareholders’ meeting convenes, the
attending shareholders shall be required to sign the
Shareholders’ Attendance List in the proper register,
identifying themselves by name, place of residence and
number of shares of record.
Article 13. Before a shareholders’ meeting convenes, the
attending shareholders shall be required to sign the
Shareholders’ Attendance List in the proper register,
identifying themselves by name, place of residence and
number of shares of record.
Paragraph 1. The list of shareholders present shall be closed
by the Chair of the Meeting, immediately after the
instatement of Shareholders’ Meeting.
Paragraph 1. The list of shareholders present shall be closed
by The Chair of the Meeting shall close the Shareholders’
Attendance List, promptly upon convening the shareholders’
meeting.
Amended for language consistency with
the main provision of article 13.
Paragraph 2. Tardy shareholders appearing after the closing
of the list of shareholders present shall be allowed to
participate in the meetings but may not vote their shares on
any matter whatsoever.
Paragraph 2. Tardy shareholders appearing after the closing
of the Shareholders’ Attendance Listlist of shareholders shall
be allowed to participate in the meetings but may not vote
their shares on any matter whatsoever.
Amended for language consistency with
the main provision of article 13.
Article 14. The Company must begin the registration of the
shareholders to take part in the Shareholders’ Meeting at
least forty-eight (48) hours in advance, it being the
responsibility of the shareholder to present: (i) certificate
issued by the transfer institution for the book-entry shares
owned, in accordance of terms and conditions of Article 126
of Brazilian Corporate Law*. This proof shall be dated no
later five days before the date of the Shareholders’ Meeting.
The Company, at its discretion, may dispense the
presentation of this proof; and (ii) a proxy statement and/or
documents that evidence the powers of legal representation
of the shareholder. The shareholder or its legal
representatives shall present the Shareholders’ Meeting
documents that prove his or her identity.
Article 14. The Company must begin the registration of the
shareholders to take part in the Shareholders’ Meeting at
least forty-eight (48) hours in advance, it being the
responsibility of the shareholder to present: (i) certificate
issued by the transfer institution for the book-entry shares
owned, in accordance of terms and conditions of Article 126
of Brazilian Corporate Law*. This proof shall be dated no
later five days before the date of the Shareholders’ Meeting.
The Company, at its discretion, may dispense the
presentation of this proof; and (ii) a proxy statement and/or
documents that evidence the powers of legal representation
of the shareholder. The shareholder or its legal
representatives shall present the Shareholders’ Meeting
documents that prove his or her identity.
Article 15. Unless otherwise provided by law, and giving
due regard to the provisions of Article 7 and of paragraph 2
of Article 63 of these Bylaws, at Shareholders’ Meetings
Article 15. Unless otherwise provided by law, and giving
due regard to the provisions of Article 7 and of paragraph 2
of Article 63 of these Bylaws, at Shareholders’ Meetings
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decisions shall pass by the affirmative vote of holders of
record of a majority of the shares represented at the meeting,
not computing abstentions.
decisions shall pass by the affirmative vote of holders of
record of a majority of the shares represented at the meeting,
not computing abstentions.
Paragraph 1. Decisions taken in a shareholders’ meeting to
amend or eliminate any of the provisions set forth under
Article 69, in particular where the effects thereof curtail
shareholder rights under a tender offer requirement, shall
strictly adhere to the voting cap set forth in Article 7 of these
Bylaws.
Paragraph 1. Decisions taken in a shareholders’ meeting to
amend or eliminate any of the provisions set forth under
Article 69, in particular where the effects thereof curtail
shareholder rights under a tender offer requirement, shall
strictly adhere to the voting cap set forth in Article 7 of these
Bylaws.
Paragraph 2. A Shareholders’ Meeting shall deliberate and
decide only on matters included in the order of business,
such as announced in the related call notice, with no open-
ended discussions.
Paragraph 2. A Shareholders’ Meeting shall deliberate and
decide only on matters included in the order of business,
such as announced in the related call notice, with no open-
ended discussions.
Paragraph 3. The minutes of Shareholders’ Meetings shall be
prepared based business transacted and action taken at the
meetings, certified by the proper officers and signed by the
attending shareholders
Paragraph 3. The minutes of Shareholders’ Meetings shall be
prepared based business transacted and action taken at the
meetings, certified by the proper officers and signed by the
attending shareholders
Article 16. It shall be incumbent on shareholders convening
in a Shareholders’ Meeting, among other actions prescribed
by law and these Bylaws to decide on the matters set forth
below:
Article 16. It shall be incumbent on shareholders convening
in a Shareholders’ Meeting, among other actions prescribed
by law and these Bylaws to decide on the matters set forth
below:
(a) Review and judge the management report and financial
statements;
(a) Review and judge the management report and financial
statements;
(b) Determine the allocation of net income for the year and
approve dividend distributions based on the
management proposal;
(b) Determine the allocation of net income for the year and
approve dividend distributions based on the
management proposal;
(c) Elect and remove the Directors and the members of the (c) Elect and remove the Directors and the members of the
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Fiscal Council, if active; Fiscal Council, if active;
(d) Set the aggregate compensation of the members of the
Board of Directors and the Executive Management
Board, as well as the compensation of fiscal council
members, if elected, having regard for the provisions of
Article 17;
(d) Set the aggregate compensation of the members of the
Board of Directors and the Executive Management
Board, as well as the compensation of fiscal council
members, if elected, having regard for the provisions of
Article 17;
(e) Approve stock option plans of any type concerning
options attributable to officers, employees and service
providers of the subsidiaries;
(e) Approve stock option or stock award plans of any type
concerning options attributable to officers, employees
and service providers of the subsidiaries;
Stock awards have been added to the
provision in connection with the Stock
Award Plan, which we are submitting for
the consideration of shareholders
convening in the Combined Annual and
Extraordinary Meeting.
(f) Approve profit sharing programs for management
members giving regard to applicable legal limits, and
employee profit sharing plans, in accordance with the
human resources policy of the Company;
(f) Approve profit sharing programs for management
members giving regard to applicable legal limits, and
employee profit sharing plans, in accordance with the
human resources policy of the Company;
(g) Approve proposals for the Company to delist from the
Novo Mercado listing segment or a going private process
ultimately resulting in cancellation of the registration as
a public company;
(g) Approve proposals for the Company to delist from the
Novo Mercado listing segment or a going private process
ultimately resulting in cancellation of the registration as
a public company;
(h) Based on a list of selected firms provided by the Board of
Directors, appoint a specialized firm to determine the
economic value of the Company shares and prepare the
valuation report, in the event of a going private process
for cancellation of the registration as a public company,
or of delisting from the Novo Mercado, as contemplated
under CHAPTER VIII hereof;
(h) Based on a list of selected firms provided by the Board of
Directors, appoint a specialized firm to determine the
economic value of the Company shares and prepare the
valuation report, in the event of a going private process
for cancellation of the registration as a public company,
or of delisting from the Novo Mercado, as contemplated
under CHAPTER VIII hereof;
(i) Suspend the rights of a shareholder, as provided under
Article 120 of Brazilian Corporate Law* and Article 18 of
(i) Suspend the rights of a shareholder, as provided under
Article 120 of Brazilian Corporate Law* and Article 18 of
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these Bylaws; these Bylaws;
(j) Approve acquisitions of ownership interest in other
companies and/or associations or joint ventures or
consortia, where the value of any such interest is in
excess of three times the Reference Amount;
(j) Approve acquisitions of ownership interest in other
companies and/or associations or joint ventures or
consortia, where the value of any such interest is in
excess of three times the Reference Amount;
(k) Approve any disposition of a material portion of the
Company assets or its trademarks; and
(k) Approve any disposition of a material portion of the
Company assets or its trademarks; and
(l) Approve transactions such as a merger with another
company, a share-for-share merger, or a consolidation or
spin-off transaction, or a transformation of corporate
type, or the dissolution of the Company, for this purpose
giving regard to any legally prescribed quorum to
resolve, except where the CVM may have authorized a
lower quorum, such as foreseen under paragraph 2 of
article 136 of Brazilian Corporate Law*.
(l) Approve transactions such as a merger with another
company, a share-for-share merger, or a consolidation or
spin-off transaction, or a transformation of corporate
type, or the dissolution of the Company, for this purpose
giving regard to any legally prescribed quorum to
resolve, except where the CVM may have authorized a
lower quorum, such as foreseen under paragraph 2 of
article 136 of Brazilian Corporate Law*.
Minor language adjustments.
Article 17. The Shareholders’ Meeting shall set the aggregate
compensation of the members of the Board of Directors and
Executive Management Board, and shall allocate the portion
attributable to each body.
Article 17. The Shareholders’ Meeting shall set the aggregate
compensation of the members of the Board of Directors and
Executive Management Board, and shall allocate the portion
attributable to each body.
Paragraph 1. Due regard given to the compensation
allocation established by the Shareholders’ Meeting, as
provided in the main provision of this Article, the Board of
Directors shall set the compensation of the Chief Executive
Officer, and the latter shall determine the individual
compensation of each Executive Officer.
Paragraph 1. Due regard given to the compensation
allocation established by the Shareholders’ Meeting, as
provided in the main provision of this Article, the Board of
Directors shall set the compensation of the Chief Executive
Officer, and the latter shall determine the individual
compensation of each Executive Officer.
Paragraph 2. The Directors and Executive Officers shall only
be entitled to profit sharing payments relative to years in
which profits are sufficient to ensure the shareholders are
paid the mandatory dividend established under Article 202
Paragraph 2. The Directors and Executive Officers shall only
be entitled to profit sharing payments relative to years in
which profits are sufficient to ensure the shareholders are
paid the mandatory dividend established under Article 202
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of Brazilian Corporate Law*. of Brazilian Corporate Law*.
Article 18. Shareholders convening in a shareholders’
meeting shall be entitled to approve a suspension of the
rights, including voting rights, of any shareholder or
Shareholder Group for noncompliance with any legal or
regulatory provision or the provision of these Bylaws.
Article 18. Shareholders convening in a shareholders’
meeting shall be entitled to approve a suspension of the
rights, including voting rights, of any shareholder or
Shareholder Group for noncompliance with any legal or
regulatory provision or the provision of these Bylaws.
Paragraph 1. In the event contemplated in this Article,
shareholders individually or jointly representing at least 5%
of the outstanding shares shall be entitled to call a
shareholders’ meeting to decide on suspending the rights of
a noncompliant shareholder if, having given reasoned notice
requesting the Board of Directors to do so, the latter were to
let eight days elapse without calling the meeting. The notice
to the Board of Directors shall identify the event of
noncompliance and the noncompliant shareholder or
Shareholder Group.
Paragraph 1. In the event contemplated in this Article,
shareholders individually or jointly representing at least 5%
of the outstanding shares shall be entitled to call a
shareholders’ meeting to decide on suspending the rights of
a noncompliant shareholder if, having given reasoned notice
requesting the Board of Directors to do so, the latter were to
let eight days elapse without calling the meeting. The notice
to the Board of Directors shall identify the event of
noncompliance and the noncompliant shareholder or
Shareholder Group.
Paragraph 2. Any Shareholders’ Meeting that decides for
suspending the rights of a shareholder or Shareholder Group
shall be responsible, among other things, for deciding on the
extent and period of suspension, provided, however, no such
action may suspend a shareholder’s legally prescribed rights
to monitor corporate management and request information
from management.
Paragraph 2. Any Shareholders’ Meeting that decides for
suspending the rights of a shareholder or Shareholder Group
shall be responsible, among other things, for deciding on the
extent and period of suspension, provided, however, no such
action may suspend a shareholder’s legally prescribed rights
to monitor corporate management and request information
from management.
Paragraph 3. The suspension of rights shall cease as soon as
the shareholder resumes compliance and fulfills the
obligation.
Paragraph 3. The suspension of rights shall cease as soon as
the shareholder resumes compliance and fulfills the
obligation.
Article 19. Where a shareholder has or represents interests
that conflict with the interest of the Company in any matter
submitted for consideration at a shareholders’ meeting, such
Article 19. Where a shareholder has or represents interests
that conflict with the interest of the Company in any matter
submitted for consideration at a shareholders’ meeting, such
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shareholder shall be required to abstain from interfering in
the deliberations and voting the relevant motion. Under
article 115 of Brazilian Corporate Law*, a shareholder that
interferes in, or votes on any matter in which he or she or it
has or represents conflicting interest, shall be deemed to be
acting in abuse of voting power.
shareholder shall be required to abstain from interfering in
the deliberations and voting the relevant motion. Under
article 115 of Brazilian Corporate Law*, a shareholder that
interferes in, or votes on any matter in which he or she or it
has or represents conflicting interest, shall be deemed to be
acting in abuse of voting power.
CHAPTER IV CHAPTER IV
MANAGEMENT MANAGEMENT
Section I – General Provisions for the Management Bodies Section I – General Provisions for the Management Bodies
Article 20. The management of the Company is comprised
by the Board of Directors and the Executive Management
Board.
Article 20. The management of the Company is comprised
by the Board of Directors and the Executive Management
Board.
Sole paragraph. The roles of Board Chair and Chief
Executive Officer are separate, and no person may
accumulate the two functions.
Sole paragraph. The roles of Board Chair and Chief
Executive Officer are separate, and no person may
accumulate the two functions.
Article 21. The members of the Board of Directors and of the
Executive Management Board shall take office by signing the
instrument of investiture in the proper Company register
within no more than 30 days after their appointment date, at
which time they must also sign the Statement of Consent
from Directors and Officers required under the Novo Mercado
Listing Rules. The directors and officers must remain in
office until their successors are appointed and take office.
Article 21. The members of the Board of Directors and of the
Executive Management Board shall take office by signing the
instrument of investiture in the proper Company register
within no more than 30 days after their appointment date, at
which time they must also sign the Statement of Consent
from Directors and Officers required under the Novo Mercado
Listing Rules. The directors and officers must remain in
office until their successors are appointed and take office.
Sole paragraph. The directors and officers of the Company
must also adhere to the Manual for the Disclosure and Use of
Sole paragraph. The directors and officers of the Company
must also adhere to the Disclosures and Securities Trading Adjustment for consistency with the new
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Information and Policy for Trading Securities adopted by the
Company, for which purpose they will sign the relevant
instrument of adherence.
Policy ManualsManual for the Disclosure and Use of
Information and Policy for Trading Securities Issued by the
Company adopted by the Company, for which purpose they
will sign the relevant instrument of adherence.
name of the policy manuals approved at a
Board meeting held on December 11, 2012.
Section II – Board of Directors Section II – Board of Directors
Subsection I – Composition Subsection I – Composition
Article 22. The Board of Directors shall comprise at least
seven and at most 11 members, elected by the Shareholders’
Meeting for unified two-year terms, removal and reelection
being permitted.
Article 22. The Board of Directors shall comprise at least
seven and at most 11 members, elected by the Shareholders’
Meeting for unified two-year terms, removal and reelection
being permitted.
Paragraph 1. The Directors shall not hold positions in the
Executive Management Boards of either the Company or its
subsidiaries.
Paragraph 1. The Directors shall not hold positions in the
Executive Management Boards of either the Company or its
subsidiaries.
Paragraph 2. The Board of Directors shall adopt an Internal
Regulation establishing its own operating guidelines, rules
on the rights and responsibilities of the Directors and the
relationships with the Executive Management Board and
with other corporate bodies.
Paragraph 2. The Board of Directors shall adopt an Internal
Regulation establishing its own operating guidelines, rules
on the rights and responsibilities of the Directors and the
relationships with the Executive Management Board and
with other corporate bodies.
Paragraph 3. With regard to the voting process for election of
Directors, it shall be incumbent on the Chair of the
Shareholders’ Meeting to determine the voting system by
which the shareholders will be polled, while having due
regard for the provisions of Articles 23 and 24 of these
Bylaws.
Paragraph 3. With regard to the voting process for election of
Directors, it shall be incumbent on the Chair of the
Shareholders’ Meeting to determine the voting system by
which the shareholders will be polled, while having due
regard for the provisions of Articles 23 and 24 of these
Bylaws.
Paragraph 4. Unless upon a waiver pronounced at a
Shareholders’ Meeting, the eligibility requirements for
candidate directors shall include those that are set forth
Paragraph 4. Unless upon a waiver pronounced at a
Shareholders’ Meeting, the eligibility requirements for
candidate directors shall include those that are set forth
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below, in addition to the requirements set forth under
applicable Law and regulations.
below, in addition to the requirements set forth under
applicable Law and regulations.
(a) being over 25 years old; (a) being over 25 years old;
(b) having an upstanding reputation, and proficient
knowledge of the functions, operations and practices of
the capital markets operated by the Company and/or its
subsidiaries;
(b) having an upstanding reputation, and proficient
knowledge of the functions, operations and practices of
the capital markets operated by the Company and/or its
subsidiaries;
(c) not having a spouse, domestic partner or relative to the
second degree serving as director or officer of, or
employed with, the Company or any of its subsidiaries;
and
(c) not having a spouse, domestic partner or relative to the
second degree serving as director or officer of, or
employed with, the Company or any of its subsidiaries;
and
(d) not holding a position in any company deemed to be a
competitor of the Company or its subsidiaries, and
neither having, nor representing any party that has, a
conflict of interest with the Company or its subsidiaries.
A conflict of interest is presumed to exist relative to any
person that, cumulatively: (i) has been elected by a
shareholder that has also elected a director in a
competitor company; and (ii) has ties arising from a
‘subordinate relationship’ with the shareholder voting
for his or her election.
(d) not holding a position in any company deemed to be a
competitor of the Company or its subsidiaries, and
neither having, nor representing any party that has, a
conflict of interest with the Company or its subsidiaries.
A conflict of interest is presumed to exist relative to any
person that, cumulatively: (i) has been elected by a
shareholder that has also elected a director in a
competitor company; and (ii) has ties arising from a
‘subordinate relationship’ with the shareholder voting
for his or her election.
Paragraph 5. For the purposes of item (d) of the above
paragraph 4 of this Article 22, a Director shall be deemed to
have been elected by: (i) the shareholder of Shareholder
Group whose individual votes were sufficient to elect a
Director; or (ii) the shareholder or Shareholder Group whose
individual votes were sufficient to elect a Director in a
cumulative voting process (or would have been sufficient
based on the total of attendee shareholders, had the
Paragraph 5. For the purposes of item (d) of the above
paragraph 4 of this Article 22, a Director shall be deemed to
have been elected by: (i) the shareholder of Shareholder
Group whose individual votes were sufficient to elect a
Director; or (ii) the shareholder or Shareholder Group whose
individual votes were sufficient to elect a Director in a
cumulative voting process (or would have been sufficient
based on the total of attendee shareholders, had the
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cumulative voting system been adopted); or (iii) the
shareholder or Shareholder Group whose individual votes
were sufficient to meet the percentage thresholds required
under paragraph 4 of Article 141 of Brazilian Corporate
Law*, which allow for the election of Directors in a separate
voting process.
cumulative voting system been adopted); or (iii) the
shareholder or Shareholder Group whose individual votes
were sufficient to meet the percentage thresholds required
under paragraph 4 of Article 141 of Brazilian Corporate
Law*, which allow for the election of Directors in a separate
voting process.
Paragraph 6. A majority of the Directors of the Company
shall be Independent Directors, herein defined as persons
that meet the following requirements:
Paragraph 6. A majority of the Directors of the Company
shall be Independent Directors, herein defined as persons
that meet the following requirements:
(a) all of the independence standards established in the Novo
Mercado Listing Rules and in CVM Ruling No. 461/07,
cumulatively; and
(a) all of the independence standards established in the Novo
Mercado Listing Rules and in CVM Ruling No. 461/07,
cumulatively; and
(b) not holding, and not having ties with any shareholder
that holds, whether directly or indirectly, ownership
interest in 5% or more of the issued and outstanding
shares of stock, or voting stock of the Company.
(b) not holding, and not having ties with any shareholder
that holds, whether directly or indirectly, ownership
interest in 5% or more of the issued and outstanding
shares of stock, or voting stock of the Company.
Paragraph 7. Directors elected pursuant to paragraphs 4 and
5 of article 141 of Brazilian Corporate Law* shall also be
deemed to serve in the capacity of Independent Directors,
regardless of whether they meet the independence standards
established in this Article.
Paragraph 7. Directors elected pursuant to paragraphs 4 and
5 of article 141 of Brazilian Corporate Law* shall also be
deemed to serve in the capacity of Independent Directors,
regardless of whether they meet the independence standards
established in this Article.
Paragraph 8. In addition to the requirements set forth in the
preceding paragraphs, the members of the Board of Directors
shall at no time include more than one Director having ties
with a holder of permit for access to the Company’s markets,
or having ties with the same entity, conglomerate or
economic group.
Paragraph 8. In addition to the requirements set forth in the
preceding paragraphs, the members of the Board of Directors
shall at no time include more than one Director having ties
with a holder of permit for access to the Company’s markets,
or having ties with the same entity, conglomerate or
economic group.
Paragraph 9. For the purposes of this Article, having “ties” Paragraph 9. For the purposes of this Article, having “ties”
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with a party is defined as: with a party is defined as:
(a) an employment relationship, or one arising from any
agreement for provision of professional services on a
continuing basis or from participation in any
management or advisory or deliberative body or fiscal
council of an entity;
(a) an employment relationship, or one arising from any
agreement for provision of professional services on a
continuing basis or from participation in any
management or advisory or deliberative body or fiscal
council of an entity;
(b) any direct or indirect ownership interest in excess of 10%
of the issued and outstanding shares of stock or voting
stock of the Company; or
(b) any direct or indirect ownership interest in excess of 10%
of the issued and outstanding shares of stock or voting
stock of the Company; or
(c) a relationship established through a spouse, domestic
partner or relative to the second degree.
(c) a relationship established through a spouse, domestic
partner or relative to the second degree.
Paragraph 10. Any Director that ceases to meet the eligibility
requirements established in this Article, due to a
supervening event or circumstance unknown at the time of
the election, shall be replaced promptly upon disclosure of
such event or circumstance.
Paragraph 10. Any Director that ceases to meet the eligibility
requirements established in this Article, due to a
supervening event or circumstance unknown at the time of
the election, shall be replaced promptly upon disclosure of
such event or circumstance.
Subsection II – Election Subsection II – Election
Article 23. Without prejudice to the provision of Article 24, a
slate system shall be adopted in elections of the members of
the Board of Directors.
Article 23. Without prejudice to the provision of Article 24, a
slate system shall be adopted in elections of the members of
the Board of Directors.
Paragraph 1. In the election provided for in this Article 23,
only the following slates of candidates may run: (i) those
nominated by the Board of Directors, as advised by the
Nominations and Corporate Governance Committee; or (ii)
those that are appointed by any shareholder or group of
shareholders in the manner provided for in paragraph 3 of
this Article.
Paragraph 1. In the election provided for in this Article 23,
only the following slates of candidates may run: (i) those
nominated by the Board of Directors, as advised by the
Nominations and Corporate Governance Committee; or (ii)
those that are appointed by any shareholder or group of
shareholders in the manner provided for in paragraph 3 of
this Article.
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Paragraph 2. The Board of Directors, as advised by the
Nominations and Corporate Governance Committee shall,
on the date the Shareholders’ Meeting that is to elect the
members of the Board of Directors is called, make available
at the Company’s headquarters any statement signed by each
of the members of the slate of candidates appointed,
containing: (i) his or her complete identification information;
(ii) a complete description of his or her professional
experience, including previous work experience
qualifications and academic qualifications; and (iii)
information regarding disciplinary or judicial proceedings in
which a judgment of guilty has been entered under a final
and unappealable decision issued, in addition to information
on instances of disqualification or inability to serve or
conflict of interest with the Company, if any, such as
prescribed under Article 147, paragraph 3, of Brazilian
Corporate Law*.
Paragraph 2. The Board of Directors, as advised by the
Nominations and Corporate Governance Committee shall,
on the date the Shareholders’ Meeting that is to elect the
members of the Board of Directors is called, make available
at the Company’s headquarters any statement signed by each
of the members of the slate of candidates appointed,
containing: (i) his or her complete identification information;
(ii) a complete description of his or her professional
experience, including previous work experience
qualifications and academic qualifications; and (iii)
information regarding disciplinary or judicial proceedings in
which a judgment of guilty has been entered under a final
and unappealable decision issued, in addition to information
on instances of disqualification or inability to serve or
conflict of interest with the Company, if any, such as
prescribed under Article 147, paragraph 3, of Brazilian
Corporate Law*.
Paragraph 3. Where a shareholder or group of shareholders
wishes to propose a different slate of candidate nominations
to the Board of Directors, it shall forward to the Board of
Directors at least five days before the date of the
Shareholders’ Meeting, statements signed individually by the
candidates they nominate, containing the information
required in the preceding paragraph. The Board of Directors,
as advised by the Nominations and Corporate Governance
Committee shall promptly post notice in the Company’s
Internet site advising shareholders that the documents
concerning other slates and related information are available
at the registered office, and shall forward the same
information via computer to the CVM and BM&FBOVESPA..
Paragraph 3. Where a shareholder or group of shareholders
wishes to propose a different slate of candidate nominations
to the Board of Directors, it shall forward to the Board of
Directors at least five days before the date of the
Shareholders’ Meeting, statements signed individually by the
candidates they nominate, containing the information
required in the preceding paragraph. The Board of Directors,
as advised by the Nominations and Corporate Governance
Committee shall promptly post notice in the Company’s
Internet site advising shareholders that the documents
concerning other slates and related information are available
at the registered office, and shall forward the same
information via computer to the CVM and BM&FBOVESPA..
Paragraph 4. Candidates nominated by the Board of Paragraph 4. Candidates nominated by the Board of
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Directors or any shareholder to serve as independent
directors shall be identified as such, due regard being given
to the eligibility requirements set forth in Paragraphs 6 and 7
of Article 22 of these Bylaws..
Directors or any shareholder to serve as independent
directors shall be identified as such, due regard being given
to the eligibility requirements set forth in Paragraphs 6 and 7
of Article 22 of these Bylaws..
Paragraph 5. A single person may be nominated in two or
more slates, including the one proposed by the Board of
Directors.
Paragraph 5. A single person may be nominated in two or
more slates, including the one proposed by the Board of
Directors.
Paragraph 6. Any shareholder shall vote for just one slate,
and the votes shall be computed in compliance with the
limitations provided for in Article 7. The candidates
nominated in the slate that receives the highest number of
votes shall be declared elected.
Paragraph 6. Any shareholder shall vote for just one slate,
and the votes shall be computed in compliance with the
limitations provided for in Article 7. The candidates
nominated in the slate that receives the highest number of
votes shall be declared elected.
Paragraph 7. Where the candidates are nominated
individually, the voting system shall dispense with the slate
system and votes shall be cast relative to each individual
candidate.
Paragraph 7. Where the candidates are nominated
individually, the voting system shall dispense with the slate
system and votes shall be cast relative to each individual
candidate.
Article 24. In elections of the members of the Board of
Directors, shareholders individually or jointly representing
interest in at least 5% of the outstanding shares are entitled to
request adoption of cumulative voting system, provided they
so request at least 48 hours prior to the Shareholders’
Meeting.
Article 24. In elections of the members of the Board of
Directors, shareholders individually or jointly representing
interest in at least 5% of the outstanding shares are entitled to
request adoption of cumulative voting system, provided they
so request at least 48 hours prior to the Shareholders’
Meeting.
Paragraph 1. Promptly upon receiving the request, the
Company shall release notice thereof in the Company’s
Internet site advising shareholders that the election will take
place in a cumulative voting process, and shall forward the
same information, via computer, to the CVM and
BM&FBOVESPA.
Paragraph 1. Promptly upon receiving the request, the
Company shall release notice thereof in the Company’s
Internet site advising shareholders that the election will take
place in a cumulative voting process, and shall forward the
same information, via computer, to the CVM and
BM&FBOVESPA.
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Paragraph 2. On convening the meeting, the presiding
officers shall determine the number of eligible votes
attributable to each shareholder or Shareholder Group, based
on the signatures affixed to the Shareholders’ Attendance
List and number of shares of record, provided that for
purposes of the voting cap established in Article 7 of these
Bylaws, the number of board seats to be filled in the election
shall be multiplied by the number of eligible votes, meaning
votes not exceeding the cap threshold of 7% of the
outstanding shares.
Paragraph 2. On convening the meeting, the presiding
officers shall determine the number of eligible votes
attributable to each shareholder or Shareholder Group, based
on the signatures affixed to the Shareholders’ Attendance
List and number of shares of record, provided that for
purposes of the voting cap established in Article 7 of these
Bylaws, the number of board seats to be filled in the election
shall be multiplied by the number of eligible votes, meaning
votes not exceeding the cap threshold of 7% of the
outstanding shares.
Paragraph 3. Where the election of Directors adopts a
cumulative voting process, the slate system shall be
dispensed with and votes shall be cast individually on the
candidates nominated in slates presented by the Board and
shareholders according to Article 23, provided each
candidate shall have signed and presented to the meeting a
statement containing the information required under
paragraph 2 of Article 23 of these Bylaws..
Paragraph 3. Where the election of Directors adopts a
cumulative voting process, the slate system shall be
dispensed with and votes shall be cast individually on the
candidates nominated in slates presented by the Board and
shareholders according to Article 23, provided each
candidate shall have signed and presented to the meeting a
statement containing the information required under
paragraph 2 of Article 23 of these Bylaws..
Paragraph 4. Any shareholder or Shareholder Group shall be
entitled to allot all of its votes to a single candidate or spread
out the votes among several. Candidates that receive the
highest number of votes shall be declared elected.
Paragraph 4. Any shareholder or Shareholder Group shall be
entitled to allot all of its votes to a single candidate or spread
out the votes among several. Candidates that receive the
highest number of votes shall be declared elected.
Paragraph 5. Where a tie is determined to have occurred for
any given board seat, an additional voting round shall take
place after the number of eligible votes attributable to each
shareholder or Shareholder Group.
Paragraph 5. Where a tie is determined to have occurred for
any given board seat, an additional voting round shall take
place after the number of eligible votes attributable to each
shareholder or Shareholder Group.
Paragraph 6. Where the election of Directors is carried out in
a cumulative voting process, the removal of one shall result
in removal of all the Directors for a new election process to
take place. Otherwise, where a board seat becomes vacant,
Paragraph 6. Where the election of Directors is carried out in
a cumulative voting process, the removal of one shall result
in removal of all the Directors for a new election process to
take place. Otherwise, where a board seat becomes vacant,
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elections shall be held to elect the entire Board of Directors in
the next shareholders’ meeting taking place after the event. .
elections shall be held to elect the entire Board of Directors in
the next shareholders’ meeting taking place after the event. .
Paragraph 7. Where the Company is under control of any
individual controlling shareholder or Shareholder Group,
(pursuant to Article 116 of Brazilian Corporate Law*), at
elections of the members of the Board of Directors
shareholders representing 10% of the outstanding shares of
shall be entitled to request adoption of a separate voting
system (plumping) for the election, as permitted under
paragraphs 4 and 5 of Article 141 of Brazilian Corporate
Law*. In this event the provisions of Article 23 of these
Bylaws shall not apply.
Paragraph 7. Where the Company is under control of any
individual controlling shareholder or Shareholder Group,
(pursuant to Article 116 of Brazilian Corporate Law*), at
elections of the members of the Board of Directors
shareholders representing 10% of the outstanding shares of
shall be entitled to request adoption of a separate voting
system (plumping) for the election, as permitted under
paragraphs 4 and 5 of Article 141 of Brazilian Corporate
Law*. In this event the provisions of Article 23 of these
Bylaws shall not apply.
Article 25. The Board of Directors shall appoint the
Chairman and Vice Chairman from among its members. The
appointment shall take place in the first meeting held after
the Directors take office or in the first meeting after the
vacancy of these positions.
Article 25. The Board of Directors shall appoint the
Chairman and Vice Chairman from among its members. The
appointment shall take place in the first meeting held after
the Directors take office or in the first meeting after the
vacancy of these positions.
Subsection III – Meetings and Substitutions Subsection III – Meetings and Substitutions
Article 26. The Board of Directors shall hold ordinary
meetings at least every two months, according to a meeting
calendar which the Chairman of the Board will release to the
directors on the first month of each year, and shall hold
extraordinary meetings as often as may be necessary, upon
being summoned as prescribed under paragraph 1 of this
Article or two-thirds of its members.
Article 26. The members of the Board of Directors shall hold
ordinary meetings at least every two months, according to a
meeting calendar which the Chairman of the Board will
release to the directors on the first month of each year, and
will hold extraordinary meetings as often as may be
necessary, upon being summoned as prescribed under
paragraph 1 of this Article or two-thirds of its members.
Paragraph 1. The Chairman or the Vice Chairman, if the
former is absent, shall issue call notices of meetings of the
Board of Directors.
Paragraph 1. The Chairman or the Vice Chairman, if the
former is absent, shall issue call notices of meetings of the
Board of Directors.
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Paragraph 2. The call notice for the meetings of the Board of
Directors shall be in writing, by letter, telegram, fax, e-mail
or other manner which allows proof of receipt of the called
notice by the addressee, and must contain, in addition to the
place, date and time of the meeting, and the agenda.
Paragraph 2. The call notice for the meetings of the Board of
Directors shall be in writing, by letter, telegram, fax, e-mail
or other manner which allows proof of receipt of the called
notice by the addressee, and must contain, in addition to the
place, date and time of the meeting, and the agenda.
Paragraph 3. The meetings of the Board of Directors shall be
convened with, at least, three days notice. Regardless of the
formalities for convening a meeting, the meeting shall be
considered regular when all of the members of the Board of
Directors attend.
Paragraph 3. The meetings of the Board of Directors shall be
convened with, at least, three days notice. Regardless of the
formalities for convening a meeting, the meeting shall be
considered regular when all of the members of the Board of
Directors attend.
Paragraph 4. The Directors may take part in the meetings of
the Board of Directors by conference call, videoconference or
by any other means of communication that allows the
identification of the Director and the simultaneous
communication with all of the other people present at the
meeting. In this case, the Directors shall be considered
present at the meeting and must sign the respective minutes.
Paragraph 4. The Directors may take part in the meetings of
the Board of Directors by conference call, videoconference or
by any other means of communication that allows the
identification of the Director and the simultaneous
communication with all of the other people present at the
meeting. In this case, the Directors shall be considered
present at the meeting and must sign the respective minutes.
Paragraph 5. No member of the Board of Directors may have
access to information, take part in decisions and discussions
of the Board of Directors or any other management bodies,
exercise the right to vote or, in any way intervene in the
matters in which he or she, directly or indirectly, has a
conflict of interests with those of the Company, under the
terms of the law.
Paragraph 5. No member of the Board of Directors may have
access to information, take part in decisions and discussions
of the Board of Directors or any other management bodies,
exercise the right to vote or, in any way intervene in the
matters in which he or she, directly or indirectly, has a
conflict of interests with those of the Company, under the
terms of the law.
Paragraph 6. The quorum for the instatement of the meetings
of the Board of Directors, on first call, shall be the absolute
majority of its members. On second call, which shall be the
object of a new communication to the Directors in the
manner described in paragraph 1 of this Article, sent
immediately after the date set for the first call, the meeting
Paragraph 6. The quorum for the instatement of the meetings
of the Board of Directors, on first call, shall be the absolute
majority of its members. On second call, which shall be the
object of a new communication to the Directors in the
manner described in paragraph 1 of this Article, sent
immediately after the date set for the first call, the meeting
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shall be instated with any number of Directors present. shall be instated with any number of Directors present.
Paragraph 7. Except otherwise provided for in these Bylaws,
the decisions of the Board of Directors shall be taken by
majority vote of the members present at the meetings. The
Chairman of the Board of Directors shall cast the deciding
vote in case of tie.
Paragraph 7. Except otherwise provided for in these Bylaws,
the decisions of the Board of Directors shall be taken by
majority vote of the members present at the meetings. The
Chairman of the Board of Directors shall cast the deciding
vote in case of tie.
Paragraph 8. The Chief Executive Officer, or his or her
substitute, shall take part in the meetings of the Board of
Directors, but shall withdraw on request of the directors.
Paragraph 8. The Chief Executive Officer, or his or her
substitute, shall take part in the meetings of the Board of
Directors, but shall withdraw on request of the directors.
Article 27. Except otherwise provided for in paragraph 6 of
Article 24 and observing the sole paragraph of this Article, if
there is a vacancy occurring in the membership of the Board
of Directors, the replacement shall be appointed by the other
Directors based on a recommendation of the Nominations
and Corporate Governance Committee to serve until the next
Shareholders’ Meeting, when a new Director must be elected
to complete the term of office of the replaced Director. Where
there is a vacancy of the majority of positions of the Board of
Directors, a Shareholders’ Meeting must be convened, within
a maximum of 15 days from the event, to elect the alternates,
who must complete the terms of office of those being
replaced.
Article 27. Except otherwise provided for in paragraph 6 of
Article 24 and observing the sole paragraph of this Article, if
there is a vacancy occurring in the membership of the Board
of Directors, the replacement shall be appointed by the other
Directors based on a recommendation of the Nominations
and Corporate Governance Committee to serve until the next
Shareholders’ Meeting, when a new Director must be elected
to complete the term of office of the replaced Director. Where
there is a vacancy of the majority of positions of the Board of
Directors, a Shareholders’ Meeting must be convened, within
a maximum of 15 days from the event, to elect the alternates,
who must complete the terms of office of those being
replaced.
Sole paragraph. In the event of vacancy in the position of
Board Chairman, the Vice Chairman shall fill in the position
until such time as a new Chairman is elected.
Sole paragraph. In the event of vacancy in the position of
Board Chairman, the Vice Chairman shall fill in the position
until such time as a new Chairman is elected.
Article 28. In cases of absence or temporary inability,
the absent or temporarily impeded Director may be
represented in the meetings of the Board of Directors by
another Director appointed in writing, who, in addition to
Article 28. In cases of absence or temporary inability,
the absent or temporarily impeded Director may be
represented in the meetings of the Board of Directors by
another Director appointed in writing, who, in addition to
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having his or her own vote, shall present the vote of the
absent or temporarily impeded Director.
having his or her own vote, shall present the vote of the
absent or temporarily impeded Director.
Paragraph 1. If the Director to be represented is an
Independent Director, the Director who represents him or
her must also fall within the classification of Independent
Director.
Paragraph 1. If the Director to be represented is an
Independent Director, the Director who represents him or
her must also fall within the classification of Independent
Director.
Paragraph 2. In the event of absence or temporary inability of
the Chairman of the Board, his or her functions shall be
provisionally filled in by the Vice Chairman or another
director appointed by the Vice Chairman.
Paragraph 2. In the event of absence or temporary inability of
the Chairman of the Board, his or her functions shall be
provisionally filled in by the Vice Chairman or another
director appointed by the Vice Chairman.
Paragraph 3. In the event of absence or temporary inability of
the Vice Chairman, the Chairman shall appoint a
replacement from among the other Directors.
Paragraph 3. In the event of absence or temporary inability of
the Vice Chairman, the Chairman shall appoint a
replacement from among the other Directors.
Subsection IV – Duties Subsection IV – Duties
Article 29. The responsibilities of the Board of Directors
include the following:
Article 29. The responsibilities of the Board of Directors
include the following:
(a) determining the general business guidelines of the
Company and its subsidiaries; including the approval
the annual budget and budget revisions of the Company
and its subsidiaries; and setting strategic plans and
targets for future periods, overseeing execution;
(a) determining the general business guidelines of the
Company and its subsidiaries; including the approval
the annual budget and budget revisions of the Company
and its subsidiaries; and setting strategic plans and
targets for future periods, overseeing execution;
(b) electing and removing the Executive Officers of the
Company and approving the Executive Management
Internal Regulation, whereas giving regard to the
provisions of these Bylaws;
(b) electing and removing the Executive Officers of the
Company and approving the Executive Management
Internal Regulation, whereas giving regard to the
provisions of these Bylaws;
(c) overseeing management of the Officers; examining the (c) overseeing management of the Officers; examining the
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books and records of the Company at any time,
requesting information on previous or impending
transactions and any other management acts;
books and records of the Company at any time,
requesting information on previous or impending
transactions and any other management acts;
(d) deciding on the convening of the Shareholders’
Meetings;
(d) deciding on the convening of the Shareholders’
Meetings;
(e) submitting the Management Report and accounts, and
the annual financial statements to the Shareholders’
Meeting, along with its recommendations;
(e) submitting the Management Report and accounts, and
the annual financial statements to the Shareholders’
Meeting, along with its recommendations;
(f) presenting to the Shareholders’ Meeting the proposal on
allocation of the net income for the year;
(f) presenting to the Shareholders’ Meeting the proposal on
allocation of the net income for the year;
(g) granting prior authorization for the execution of
agreements of any kind, as well as settlements or waivers
of rights, which in any event imply liabilities for the
Company at amounts in excess of the Reference Amount,
as defined in the sole paragraph of this Article, to the
extent they have not been contemplated in the annual
budget, except however for the agreements set forth in
item (e) of Article 38 of these Bylaws;
(g) granting prior authorization for the execution of
agreements of any kind, as well as settlements or waivers
of rights, which in any event imply liabilities for the
Company at amounts in excess of the Reference Amount,
as defined in the sole paragraph of this Article, to the
extent they have not been contemplated in the annual
budget, except however for the agreements set forth in
item (e) of Article 38 of these Bylaws;
(h) granting prior authorization for investments of a single
nature not contemplated in the annual budget and
whose aggregate amount exceeds the Reference Amount;
(h) granting prior authorization for investments of a single
nature not contemplated in the annual budget and
whose aggregate amount exceeds the Reference Amount;
(i) granting prior authorization for any loan, financing,
bond issuance, or cancellation of simple, non-convertible
debentures not secured by collateral, or for the giving of
collateral or personal guarantees by the Company on
behalf of its subsidiaries, where the amount involved is
in excess of the Reference Amount and the transaction
has not been contemplated in the annual budget;
(i) granting prior authorization for any loan, financing,
bond issuance, or cancellation of simple, non-convertible
debentures not secured by collateral, or for the giving of
collateral or personal guarantees by the Company on
behalf of its subsidiaries, where the amount involved is
in excess of the Reference Amount and the transaction
has not been contemplated in the annual budget;
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(j) authorizing the Executive Management Board to acquire,
or dispose of, or give collateral or create liens of any kind
on permanent assets of the Company, where the amount
involved implies liability in excess of the Reference
Amount and the transaction has not been contemplated
in the annual budget;
(j) authorizing the Executive Management Board to acquire,
or dispose of, or give collateral or create liens of any kind
on permanent assets of the Company, where the amount
involved implies liability in excess of the Reference
Amount and the transaction has not been contemplated
in the annual budget;
(k) granting prior authorization for the Company or a
subsidiary to enter into partnership or shareholders
agreements involving the Company or its subsidiaries;
(k) granting prior authorization for the Company or a
subsidiary to enter into partnership or shareholders
agreements involving the Company or its subsidiaries;
(l) deciding on the voting instructions where the Company
is to attend shareholders’ meetings of companies in
which it holds ownership interest, and granting prior
consent for approval of amendments to the articles of
association or bylaws of any investees, where the interest
value is in excess of the Reference Amount, due regard
being given to the provision under item 0 of Article 16;
(l) deciding on the voting instructions where the Company
is to attend shareholders’ meetings of companies in
which it holds ownership interest, and granting prior
consent for approval of amendments to the articles of
association or bylaws of any investees, where the interest
value is in excess of the Reference Amount, due regard
being given to the provision under item 0 of Article 16;
(m) appointing the Executive Officers of the subsidiaries,
provided that, unless otherwise decided by 75% of the
Directors, the appointment of the lead executives will
coincide with that of the Chief Executive Officer;
(m) appointing the Executive Officers of the subsidiaries,
provided that, unless otherwise decided by 75% of the
Directors, the appointment of the lead executives will
coincide with that of the Chief Executive Officer;
(n) deciding on proposals for the Company to repurchases
of its own shares whether for the shares to be kept as
treasury stock or for cancellation or subsequent reissue;
(n) deciding on proposals for the Company to repurchases
of its own shares whether for the shares to be kept as
treasury stock or for cancellation or subsequent reissue;
(o) having due regard for the corporate purposes stated in
Article 3, deciding on acquisitions of ownership interest
in other companies, and membership in philanthropic
associations and organizations, where the amount
involved is in excess of the Reference Amount and
except for interest acquired within the scope of the
(o) having due regard for the corporate purposes stated in
Article 3, deciding on acquisitions of ownership interest
in other companies, and membership in philanthropic
associations and organizations, where the amount
involved is in excess of the Reference Amount and
except for interest acquired within the scope of the
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Company’s policy on financial investments; Company’s policy on financial investments;
(p) granting authorization, regardless of the amount
involved, for the Company to guarantee third-party
obligations under transactions unrelated to the Company
business or not arising from its operations, in particular
in connection with its role as central counterparty
clearing (and whether involving the Company or a
subsidiary);
(p) granting authorization, regardless of the amount
involved, for the Company to guarantee third-party
obligations under transactions unrelated to the Company
business or not arising from its operations, in particular
in connection with its role as central counterparty
clearing (and whether involving the Company or a
subsidiary);
(q) defining the three nominations list of selected specialized
firms, proposed for a valuation of the Company shares
and preparation of the valuation report, in the event a
tender offer is to be conducted in a going private process
(and cancellation of the public company registration) or
for the Company to delist from the Novo Mercado, as
provided in paragraph 2 of Article 63 of these Bylaws;
(q) defining the three nominations list of selected specialized
firms, proposed for a valuation of the Company shares
and preparation of the valuation report, in the event a
tender offer is to be conducted in a going private process
(and cancellation of the public company registration) or
for the Company to delist from the Novo Mercado, as
provided in paragraph 2 of Article 63 of these Bylaws;
(r) approving the hiring of a registrar to provide securities
bookkeeping services;
(r) approving the hiring of a registrar to provide securities
bookkeeping services;
(s) deciding on distributions (for payment or crediting to
shareholders) of interest on shareholders’ equity,
pursuant to applicable legislation;
(s) deciding on distributions (for payment or crediting to
shareholders) of interest on shareholders’ equity,
pursuant to applicable legislation;
(t) appointing and removing the independent auditors,
while giving regard to item (a) of Article 47,
(t) appointing and removing the independent auditors,
while giving regard to item (a) of Article 47,
(u) appointing the members of standing Advisory
Committees from among the Directors, and the members
of other committees or temporary working groups
established by the Board of Directors; and
(u) appointing the members of standing Advisory
Committees from among the Directors, and the members
of other committees or temporary working groups
established by the Board of Directors; and
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(v) within fifteen (15) days after the announcement of any
tender offer initiated for shares issued by the Company,
expressing its support of, or opposition to, the offer in a
reasoned opinion to be released to the market, which
must advise the shareholders at least with regard to (i)
the timing and convenience of the bid vis-à-vis the
shareholders’ interests and the liquidity of their shares;
(ii) the offer impact on the business interests of the
Company; (iii) the bidder’s announced strategic plans
for the Company; and (iv) any other points of
consideration the Board may deem relevant, in addition
to providing the information required under applicable
CVM rules.
(v) within fifteen (15) days after the announcement of any
tender offer initiated for shares issued by the Company,
expressing its support of, or opposition to, the offer in a
reasoned opinion to be released to the market, which
must advise the shareholders at least with regard to (i)
the timing and convenience of the bid vis-à-vis the
shareholders’ interests and the liquidity of their shares;
(iii) the offer impact on the business interests of the
Company; (iii) the bidder’s announced strategic plans
for the Company; and (iv) any other points of
consideration the Board may deem relevant, in addition
to providing the information required under applicable
CVM rules.
Sole paragraph. For purposes of these Bylaws, the Reference
Amount shall equal 1% of the net equity value of the
Company, as determined at the end of the immediately
preceding year.
Sole paragraph. For purposes of these Bylaws, the Reference
Amount shall equal 1% of the net equity value of the
Company, as determined at the end of the immediately
preceding year.
Article 30. The Board of Directors shall also have powers to: Article 30. The Board of Directors shall also have powers to:
(a) approve the Market Access Regulations, as well as rules
governing admission, suspension and exclusion of Access
Permit holders, in addition other regulatory rules,
operating rules or clearing/settlement rules designed to
regulate and define transactions in debt or equity
securities, bonds and derivatives contracts admitted for
trading and/or registration, as carried out in any of the
trading, registration, clearing and settlement systems
operated by the Company and its subsidiaries;
(a) approve the Market Access Regulations, as well as rules
governing admission, suspension and exclusion of Access
Permit holders, in addition other regulatory rules,
operating rules or clearing/settlement rules designed to
regulate and define transactions in debt or equity
securities, bonds and derivatives contracts admitted for
trading and/or registration, as carried out in any of the
trading, registration, clearing and settlement systems
operated by the Company and its subsidiaries;
(b) approve rules related to issuer registration and listing,
admission for trading, suspension and delisting of debt
or equity securities, bonds and derivatives contracts, as
(b) approve rules related to issuer registration and listing,
admission for trading, suspension and delisting of debt
or equity securities, bonds and derivatives contracts, as
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applicable; applicable;
(c) approve operating rules and regulations applicable
within the scope of any clearing house and the
registration systems, and clearing and settlement systems
operated by the Company and its subsidiaries;
(c) approve operating rules and regulations applicable
within the scope of any clearing house and the
registration systems, and clearing and settlement systems
operated by the Company and its subsidiaries;
(d) approve the Code of Ethics applicable to Participants
with access to markets operated by the Company, which
code will provide rules of ethical conduct necessary to
ensure proper market functioning and high standards of
business conduct , in addition to approving rules to
regulate the operation and composition of the Ethics
Committee, and electing the Committee members;
(d) approve the Code of Ethics applicable to Participants
with access to markets operated by the Company, which
code will provide rules of ethical conduct necessary to
ensure proper market functioning and high standards of
business conduct , in addition to approving rules to
regulate the operation and composition of the Ethics
Committee, and electing the Committee members;
(e) establish the penalties that may apply to breaches of the
rules approved by the Board of Directors;
(e) establish the penalties that may apply to breaches of the
rules approved by the Board of Directors;
(f) decide on the granting of the Access Permits, this
decision being subject, within thirty (30) days, to a
request for review to the Shareholders’ Meeting, which
must provide a definitive decision on the subject,
observing the provisions in the law in effect;
(f) decide on the granting of the Access Permits, this
decision being subject, within thirty (30) days, to a
request for review to the Shareholders’ Meeting, which
must provide a definitive decision on the subject,
observing the provisions in the law in effect;
(g) decide concerning the suspension and the cancellation of
the Access Permits, as well as to analyze the cases where
there is a change in the control and recommendations of
new administrators of companies that are holders of
Access Permits;
(g) decide concerning the suspension and the cancellation of
the Access Permits, as well as to analyze the cases where
there is a change in the control and recommendations of
new administrators of companies that are holders of
Access Permits;
(h) order the full or partial recess of the markets
administered by the Company and by its subsidiaries,
where a gross emergency situation has been recognized
that may affect the normal functioning of market
(h) order the full or partial recess of the markets
administered by the Company and by its subsidiaries,
where a gross emergency situation has been recognized
that may affect the normal functioning of market
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activities, immediately communicating the decision, duly
founded, to the CVM;
activities, immediately communicating the decision, duly
founded, to the CVM;
(i) approve the annual report on operational risk controls
and the business continuity plan of the Company and of
its subsidiaries;
(i) approve the annual report on operational risk controls
and the business continuity plan of the Company and of
its subsidiaries;
(j) decide concerning the creation, allocation and
maintenance of funds and the other safeguarding
mechanisms, for the operations performed in the systems
and markets administered by the Company and its
subsidiaries, regulating the situations and procedures for
their use.
(j) decide concerning the creation, allocation and
maintenance of funds and the other safeguarding
mechanisms, for the operations performed in the systems
and markets administered by the Company and its
subsidiaries, regulating the situations and procedures for
their use.
Sole paragraph. The Board of Directors may delegate to the
Executive Management Board of the Company the setting of
technical, financial and operating criteria that complement
the rules and regulations stated in items (a), (b) and (c) of this
Article.
Sole paragraph. The Board of Directors may delegate to the
Executive Management Board of the Company the setting of
technical, financial and operating criteria that complement
the rules and regulations stated in items (a), (b) and (c) of this
Article.
Section II – Executive Management Board Section II – Executive Management Board
Article 31. The Executive Management Board is the body
that represents the Company, having the power to perform
all acts of the management of corporate business. The
Officers have the power to: (i) observe and enforce the terms
and conditions of these Bylaws, the decisions of the Board of
Directors and of the Shareholders’ Meeting; (ii) perform,
within its powers, all of the acts necessary for the ordinary
operation of the Company and consecution of the corporate
purpose, and (iii) coordinate the activities of the Company’s
subsidiaries.
Article 31. The Executive Management Board is the body
that represents the Company, having the power to perform
all acts of the management of corporate business. The
Officers have the power to: (i) observe and enforce the terms
and conditions of these Bylaws, the decisions of the Board of
Directors and of the Shareholders’ Meeting; (ii) perform,
within its powers, all of the acts necessary for the ordinary
operation of the Company and consecution of the corporate
purpose, and (iii) coordinate the activities of the Company’s
subsidiaries.
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Article 32. The Executive Management Board shall be
comprised of five up to nine Officers, one being the Chief
Executive Officer and eight Executive Officers. All of the
Officers are elected and removable by the Board of Directors,
with a term of office of two years, with reelection to
consecutive terms of office being permitted.
Article 32. The Executive Management Board shall be
comprised of five up to nine Officers, one being the Chief
Executive Officer and eight Executive Officers. All of the
Officers are elected and removable by the Board of Directors,
with a term of office of two years, with reelection to
consecutive terms of office being permitted.
Sole paragraph. The Board of Directors shall designate, from
among the Officers of the Company, the one (those) who
shall fulfill the duties of Finance and Investor Relations
Officer.
Sole paragraph. The Board of Directors shall designate, from
among the Officers of the Company, the one (those) who
shall fulfill the duties of Finance and Investor Relations
Officer.
Article 33. The Executive Officers work for the Company on
an exclusive dedication basis and are not permitted while in
office to have ties (as defined in paragraph 9 of Article 22): (i)
with holders of a permit for access to the Company’s
markets, (ii) with a shareholder or Shareholder Group
owning interest in 5% or more of the issued and outstanding
shares of voting stock of the Company, (iii) with any
institution that is a participant in the Brazilian or other
international securities distribution system, (iv) with other
public companies; (v) with portfolio management firms; and
(vi) with institutional investors.
Article 33. The Executive Officers work for the Company on
an exclusive dedication basis and are not permitted while in
office to have ties (as defined in paragraph 9 of Article 22): (i)
with holders of a permit for access to the Company’s
markets, (ii) with a shareholder or Shareholder Group
owning interest in 5% or more of the issued and outstanding
shares of voting stock of the Company, (iii) with any
institution that is a participant in the Brazilian or other
international securities distribution system, (iv) with other
public companies; (v) with portfolio management firms; and
(vi) with institutional investors.
Article 34. Persons eligible to act as Chief Executive Officer
are those that meet all applicable legal and regulatory
requirements and the requirements established in paragraph
4 of Article 22, provided due regard shall be given to the
provision in the sole paragraph of Article 20 of these Bylaws.
Article 34. Persons eligible to act as Chief Executive Officer
are those that meet all applicable legal and regulatory
requirements and the requirements established in paragraph
4 of Article 22, provided due regard shall be given to the
provision in the sole paragraph of Article 20 of these Bylaws.
Paragraph 1. The Chief Executive Officer shall nominate
candidate officers for appointment by the Board of Directors.
If the Board of Directors fails to approve any of the
nominees, additional nominations will be made until they
Paragraph 1. The Chief Executive Officer shall nominate
candidate officers for appointment by the Board of Directors.
If the Board of Directors fails to approve any of the
nominees, additional nominations will be made until they
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meet with the approval of the Board of Directors. meet with the approval of the Board of Directors.
Paragraph 2. The Chief Executive Officer may suspend from
office any executive officer pending a decision of the Board
of Directors on his or her removal from office.
Paragraph 2. The Chief Executive Officer may suspend from
office any executive officer pending a decision of the Board
of Directors on his or her removal from office.
Article 35. The Chief Executive Officer has the following
powers, additionally to the other attributions established in
these Bylaws:
Article 35. The Chief Executive Officer has the following
powers, additionally to the other attributions established in
these Bylaws:
(a) convene and chair the meetings of the Executive
Management Board;
(a) convene and chair the meetings of the Executive
Management Board;
(b) propose to the Board of Directors the rules and
composition of the Executive Management Board;
(b) propose to the Board of Directors the rules and
composition of the Executive Management Board;
(c) guide and coordinate the activities of the remaining
Officers;
(c) guide and coordinate the activities of the remaining
Officers;
(d) undertake the general planning of the Company and of
its subsidiaries;
(d) undertake the general planning of the Company and of
its subsidiaries;
(e) approve the organizational structure of the Company,
contracting and controlling the executive staff, the
technicians, auxiliaries and consultants it believes are
convenient or necessary, defining positions, functions
and compensation and setting their duties and powers,
observing the directives imposed by the budget
approved by the Board of Directors;
(e) approve the organizational structure of the Company,
contracting and controlling the executive staff, the
technicians, auxiliaries and consultants it believes are
convenient or necessary, defining positions, functions
and compensation and setting their duties and powers,
observing the directives imposed by the budget
approved by the Board of Directors;
(f) establish the Market Risk Technical Committee, and
regulate its operation, membership, roles and
responsibilities, setting member compensation, as
applicable and with due regard for the standards
(f) establish the Market Risk Technical Committee, and
regulate its operation, membership, roles and
responsibilities, setting member compensation, as
applicable and with due regard for the standards
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established by the Compensation Committee; established by the Compensation Committee;
(g) create other Technical Committees, Consulting or
Operating Committees, Technical Commissions for the
Customization, Classification and Arbitration,
workgroups and advisory bodies, defining their
composition, roles and responsibilities;
(g) create other Technical Committees, Consulting or
Operating Committees, Technical Commissions for the
Customization, Classification and Arbitration,
workgroups and advisory bodies, defining their
composition, roles and responsibilities;
(h) determine prices, charges, compensation, commissions
and contributions and any other costs to be charged to
holders of Access Permits and to third parties, for the
services arising from the compliance of the functional,
operating, regulatory, supervision and classifying
services of the Company, ensuring their broad disclosure
to interested parties;
(h) determine prices, charges, compensation, commissions
and contributions and any other costs to be charged to
holders of Access Permits and to third parties, for the
services arising from the compliance of the functional,
operating, regulatory, supervision and classifying
services of the Company, ensuring their broad disclosure
to interested parties;
(i) propose to the Board of Directors the regulatory,
operating and clearing rules that shall govern and define
the operations performed with the securities and
contracts admitted for trading in the systems
administered by the Company or by its subsidiaries
and/or listed in any of their respective trading,
registration, clearing and settlement systems;
(i) propose to the Board of Directors the regulatory,
operating and clearing rules that shall govern and define
the operations performed with the securities and
contracts admitted for trading in the systems
administered by the Company or by its subsidiaries
and/or listed in any of their respective trading,
registration, clearing and settlement systems;
(j) determine the securities, certificates and contracts that
shall be admitted for trading, registration, clearing and
settlement in the environment and systems administered
by the Company, as well as to determine the suspension
or cancellation of the trading, registration, clearing and
settlement of these securities and contracts;
(j) determine the securities, certificates and contracts that
shall be admitted for trading, registration, clearing and
settlement in the environment and systems administered
by the Company, as well as to determine the suspension
or cancellation of the trading, registration, clearing and
settlement of these securities and contracts;
(k) supervise in real-time and inspect the transactions traded
and/or registered in any of the trading, registration,
clearing and settlement systems under the Company’s
(k) supervise in real-time and inspect the transactions traded
and/or registered in any of the trading, registration,
clearing and settlement systems under the Company’s
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surveillance; surveillance;
(l) take measures and adopt procedures to prevent the
realization of operations that may constitute breaches of
legal and regulatory rules, compliance with which is a
duty of the Company to oversee;
(l) take measures and adopt procedures to prevent the
realization of operations that may constitute breaches of
legal and regulatory rules, compliance with which is a
duty of the Company to oversee;
(m) in cases of gross emergencies, to declare the total or
partial recess of the markets under the Company and its
subsidiaries’ surveillance, immediately communicating
the decision to the Board of Directors and the CVM;
(m) in cases of gross emergencies, to declare the total or
partial recess of the markets under the Company and its
subsidiaries’ surveillance, immediately communicating
the decision to the Board of Directors and the CVM;
(n) to cautiously order the suspension, for the maximum
period of 90 days, of the activities of holders of Access
Permits, in cases provided in the Access Regulation or
the remaining rules passed by the Board of Directors, or,
also, where there is an apparent breach of the Code of
Ethics, immediately communicating the suspension to the
CVM and the Brazilian Central Bank;
(n) to cautiously order the suspension, for the maximum
period of 90 days, of the activities of holders of Access
Permits, in cases provided in the Access Regulation or
the remaining rules passed by the Board of Directors, or,
also, where there is an apparent breach of the Code of
Ethics, immediately communicating the suspension to the
CVM and the Brazilian Central Bank;
(o) prevent the performance of the operations in negotiation,
registration, clearing and settlement systems of the
Company, when there is evidence that these may
constitute breaches of the legal and regulatory rules with
which compliance is a duty of the Company to oversee;
(o) prevent the performance of the operations in negotiation,
registration, clearing and settlement systems of the
Company, when there is evidence that these may
constitute breaches of the legal and regulatory rules with
which compliance is a duty of the Company to oversee;
(p) cancel trades and/or registration of any of the
negotiation, registration, clearance or settlement of any
transactions undertaken at the environment and systems
of the Company, even if they are not yet liquidated, as
well as suspend their liquidation, in case of infraction to
the legal and regulatory rules overseen by the Company;
(p) cancel trades and/or registration of any of the
negotiation, registration, clearance or settlement of any
transactions undertaken at the environment and systems
of the Company, even if they are not yet liquidated, as
well as suspend their liquidation, in case of infraction to
the legal and regulatory rules overseen by the Company;
(q) determine special procedures for any operations (q) determine special procedures for any operations
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performed and/or registered in any of the negotiation,
registration, clearance or settlement systems of the
Company, as well as to establish conditions for their
liquidation;
performed and/or registered in any of the negotiation,
registration, clearance or settlement systems of the
Company, as well as to establish conditions for their
liquidation;
(r) immediately inform the CVM of the occurrence of events
that affect, even if only temporarily, the operation of the
markets under the Company’s surveillance, and
(r) immediately inform the CVM of the occurrence of events
that affect, even if only temporarily, the operation of the
markets under the Company’s surveillance, and
(s) send to the CVM, within the deadline and in the manner
specified by it, the information and the reports relating to
the operations performed and/or registered in any of the
negotiation, registration, compensation and liquidation
systems of the Company.
(s) send to the CVM, within the deadline and in the manner
specified by it, the information and the reports relating to
the operations performed and/or registered in any of the
negotiation, registration, compensation and liquidation
systems of the Company.
Paragraph 1. The decisions taken by the Chief Executive
Officer in exercising the powers that are dealt with in lines
(n) to (q) of the main provision of this Article, may be
appealed, by any interested party, to the Board of Directors.
Paragraph 1. The decisions taken by the Chief Executive
Officer in exercising the powers that are dealt with in lines
(n) to (q) of the main provision of this Article, may be
appealed, by any interested party, to the Board of Directors.
Paragraph 2. The period for and the effects of filing an
appeal provided in paragraph 1 of this Article, as well as the
other situations where an appeal is appropriate, shall be
established by the Board of Directors.
Paragraph 2. The period for and the effects of filing an
appeal provided in paragraph 1 of this Article, as well as the
other situations where an appeal is appropriate, shall be
established by the Board of Directors.
Paragraph 3. The Market Risk Technical Committee referred
to in item (f) of this Article shall be comprised by Executive
Officers and other Company’s employees appointed by the
Chief Executive Officer and shall have the following
responsibilities: (i) analyze the macroeconomic scenario and
related risks to the markets in which the Company
participates; (ii) define the criteria and parameters to
calculate margin values; (iii) define the criteria and
parameters for the valuation of assets received as collateral;
Paragraph 3. The Market Risk Technical Committee referred
to in item (f) of this Article shall be comprised by Executive
Officers and other Company’s employees appointed by the
Chief Executive Officer and shall have the following
responsibilities: (i) analyze the macroeconomic scenario and
related risks to the markets in which the Company
participates; (ii) define the criteria and parameters to
calculate margin values; (iii) define the criteria and
parameters for the valuation of assets received as collateral;
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(iv) define types and amounts of collateral used in the stock
exchanges and/or registered in any trade, registration,
settlement or clearing systems under the Company and its
subsidiaries’ surveillance, to be used, inclusive, for opened
contracts; (v) propose a policy for deposited margin
surveillance; (vi) analyze the market leverage; (vii)
recommend any criteria, limits and parameters for the credit
risk management of the market participants; (viii) analyze
and recommend solutions for the enhancement of the risk
management systems; and (ix) prepare any other analysis
related to the abovementioned activities.
(iv) define types and amounts of collateral used in the stock
exchanges and/or registered in any trade, registration,
settlement or clearing systems under the Company and its
subsidiaries’ surveillance, to be used, inclusive, for opened
contracts; (v) propose a policy for deposited margin
surveillance; (vi) analyze the market leverage; (vii)
recommend any criteria, limits and parameters for the credit
risk management of the market participants; (viii) analyze
and recommend solutions for the enhancement of the risk
management systems; and (ix) prepare any other analysis
related to the abovementioned activities.
Article 36. The Officer who performs the duties of Finance
Officer has the power to: (i) plan and write budgets and
work plans and of investments of the Company, annual or
multiannual relating to the activities of the Company; (ii)
answer for the control of the execution of budgets that are
referred to in the previous line; (iii) administer and invest the
financial resources of the Company, and supervise the same
activities performed by the Company’s subsidiaries, and (iv)
manage the accounts, financial and fiscal/tax planning
sectors of the Company.
Article 36. The Officer who performs the duties of Finance
Officer has the power to: (i) plan and write budgets and
work plans and of investments of the Company, annual or
multiannual relating to the activities of the Company; (ii)
answer for the control of the execution of budgets that are
referred to in the previous line; (iii) administer and invest the
financial resources of the Company, and supervise the same
activities performed by the Company’s subsidiaries, and (iv)
manage the accounts, financial and fiscal/tax planning
sectors of the Company.
Article 37. The Investor Relations Officer has the power to
disclose information to investors, the CVM and the stock
exchange or over-the-counter market where the Company’s
securities will be negotiated, as well as to maintain the
registration of the Company in compliance with applicable
CVM rules.
Article 37. The Investor Relations Officer has the power to
disclose information to investors, the CVM and the stock
exchange or over-the-counter market where the Company’s
securities will be negotiated, as well as to maintain the
registration of the Company in compliance with applicable
CVM rules.
Article 38. The responsibilities of the Executive Management
Board include the following:
Article 38. The responsibilities of the Executive Management
Board include the following:
(a) authorize the opening or closing and moving of (a) authorize the opening or closing and moving of
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branches, agencies, deposits, offices or any other
establishment of the Company in Brazil or elsewhere;
branches, agencies, deposits, offices or any other
establishment of the Company in Brazil or elsewhere;
(b) submit annually, for the consideration of the Board of
Directors, the Management Report and the financial
statements, accompanied by the independent auditors’
report, as well as the proposal on allocation of net
income for the year;
(b) submit annually, for the consideration of the Board of
Directors, the Management Report and the financial
statements, accompanied by the independent auditors’
report, as well as the proposal on allocation of net
income for the year;
(c) prepare and propose to the Board of Directors the
annual budget, multi-year budgets, strategic plans,
expansion plans and investment programs;
(c) prepare and propose to the Board of Directors the
annual budget, multi-year budgets, strategic plans,
expansion plans and investment programs;
(d) grant prior authorization for the Company or any
subsidiary to acquire or dispose of movable assets or
real property assets, to establish possessory lien or non-
possessory lien or other encumbrances on these assets,
or to take out a loan, or agree a financing arrangement,
or give security interest or personal guarantees, for an
amount representing liability below the Reference
Amount provided in the sole paragraph of Article 29;
and
(d) grant prior authorization for the Company or any
subsidiary to acquire or dispose of movable assets or
real property assets, to establish possessory lien or non-
possessory lien or other encumbrances on these assets,
or to take out a loan, or agree a financing arrangement,
or give security interest or personal guarantees, for an
amount representing liability below the Reference
Amount provided in the sole paragraph of Article 29;
and
(e) authorize the Company to enter into and/or renew
liquidity facility transactions, whether or not
collateralized, and/or asset monetization schemes with
the aim of ensuring timely compliance with obligations
of the Company related to its activities as central
counterparty clearing, regardless of the amount involved
in the transaction; and
(e) authorize the Company to enter into and/or renew
liquidity facility transactions, whether or not
collateralized, and/or asset monetization schemes with
the aim of ensuring timely compliance with obligations
of the Company related to its activities as central
counterparty clearing, regardless of the amount involved
in the transaction; and
(f) on request of the Chief Executive Officer, decide on any
matters not included within the scope of exclusive
authority of the Shareholders’ Meeting or the Board of
(f) on request of the Chief Executive Officer, decide on any
matters not included within the scope of exclusive
authority of the Shareholders’ Meeting or the Board of
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Directors. Directors.
Subsection I - Replacements and Vacancy
in the Executive Management Board
Subsection I - Replacements and Vacancy
in the Executive Management Board
Article 39. The Chief Executive Officer shall be substituted:
(i) in the event of absence or inability for a maximum 30-day
period, by another Officer appointed by him; (ii) when on
leave for over 30 days and less than 120 days, by the Officer
appointed by the Board of Directors at a meeting called
specifically for this purpose; and (iii) when on leave for 120
days or more, or when vacancies fall open, the Board of
Directors shall be convened to elect the new Chief Executive
Officer pursuant to the proceedings established in these
Bylaws.
Article 39. The Chief Executive Officer shall be substituted:
(i) in the event of absence or inability for a maximum 30-day
period, by another Officer appointed by him; (ii) when on
leave for over 30 days and less than 120 days, by the Officer
appointed by the Board of Directors at a meeting called
specifically for this purpose; and (iii) when on leave for 120
days or more, or when vacancies fall open, the Board of
Directors shall be convened to elect the new Chief Executive
Officer pursuant to the proceedings established in these
Bylaws.
Article 40. The other Officers shall be substituted: (i) for
absence or inability or leave of absence for a period not
exceeding 120 days, by an Officer appointed by the Chief
Executive Officer; and (ii) when the absence if for a period of
120 days or more, or there is a vacancy, the Board of
Directors shall be convened to elect the new Officer, under
the procedures established in paragraph 1 of Article 34.
Article 40. The other Officers shall be substituted: (i) for
absence or inability or leave of absence for a period not
exceeding 120 days, by an Officer appointed by the Chief
Executive Officer; and (ii) when the absence if for a period of
120 days or more, or there is a vacancy, the Board of
Directors shall be convened to elect the new Officer, under
the procedures established in paragraph 1 of Article 34.
Subsection II – Meetings of the Executive Management Board Subsection II – Meetings of the Executive Management Board
Article 41. Except as provided in Article 42 below, the
meetings of the Executive Management Board shall be
deemed valid with the presence of at least half plus one of
the elected Officers and resolutions shall require a majority
vote of those present. The Chief Executive Officer shall cast
the deciding vote in case of tie.
Article 41. Except as provided in Article 42 below, the
meetings of the Executive Management Board shall be
deemed valid with the presence of at least half plus one of
the elected Officers and resolutions shall require a majority
vote of those present. The Chief Executive Officer shall cast
the deciding vote in case of tie.
Article 42. Without prejudice to the specific attributes of the Article 42. Without prejudice to the specific attributes of the
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Chief Executive Officer and the other Officers, the Officers
responsible for the respective areas must be present for
decisions:
Chief Executive Officer and the other Officers, the Officers
responsible for the respective areas must be present for
decisions:
(a) Declaration of breach by a participant of any of the
Clearing Houses, specifying the relevant measures taken
in accordance with applicable regulations;
(a) Declaration of breach by a participant of any of the
Clearing Houses, specifying the relevant measures taken
in accordance with applicable regulations;
(b) Establishment of operating, credit and risk limits for
Clearing Houses direct or indirect participants, acting
individually or as a group, each subject to the specific
procedures;
(b) Establishment of operating, credit and risk limits for
Clearing Houses direct or indirect participants, acting
individually or as a group, each subject to the specific
procedures;
(c) Definition of the clearing houses ordinary procedures, as
well as the procedure for the implementation of trade
systems and guarantee and risk systems by them; and
(c) Definition of the clearing houses ordinary procedures, as
well as the procedure for the implementation of trade
systems and guarantee and risk systems by them; and
(d) Remittance of orders regarding the partial or full
settlement of opened positions in one or more markets
held by holders of Access Permits or their clients.
(d) Remittance of orders regarding the partial or full
settlement of opened positions in one or more markets
held by holders of Access Permits or their clients.
Subsection III - Company Representation Subsection III - Company Representation
Article 43. Except as otherwise provided in the paragraphs of
this Article, the Company shall be represented and shall only
be deemed bound by an act or signature:
Article 43. Except as otherwise provided in the paragraphs of
this Article, the Company shall be represented and shall only
be deemed bound by an act or signature:
(a) of two Officers; (a) of two Officers;
(b) of any Officer jointly with an attorney-in-fact with
specific powers; or
(b) of any Officer jointly with an attorney-in-fact with
specific powers; or
(c) two attorneys-in-fact with specific powers. (c) two attorneys-in-fact with specific powers.
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Paragraph 1. No acts for which these Bylaws require prior
authorization from the Board of Directors shall be valid
without this approval.
Paragraph 1. No acts for which these Bylaws require prior
authorization from the Board of Directors shall be valid
without this approval.
Paragraph 2. The Company may be represented by a single
Officer or attorney-in-fact holding specific powers to:
Paragraph 2. The Company may be represented by a single
Officer or attorney-in-fact holding specific powers to:
(a) represent the Company in routine activities performed
outside the Company’s principal place of business;
(a) represent the Company in routine activities performed
outside the Company’s principal place of business;
(b) represent the Company at Shareholders’ Meetings and
meetings of the partners at companies in which the
Company holds an interest;
(b) represent the Company at Shareholders’ Meetings and
meetings of the partners at companies in which the
Company holds an interest;
(c) represent the Company in court, except for acts that
entail waiving rights; or
(c) represent the Company in court, except for acts that
entail waiving rights; or
(d) represent the Company in simple administrative
routines, including those related to public agencies,
mixed-capital companies, boards of trade, labor courts,
the National Social Security Institute (Instituto Nacional do
Seguro Social), or INSS, the Employee’s Time in Service
Guarantee Fund (Fundo de Garantia do Tempo de Serviço),
or FGTS, and banks receiving such payments and other
activities of a similar nature.
(d) represent the Company in simple administrative
routines, including those related to public agencies,
mixed-capital companies, boards of trade, labor courts,
the National Social Security Institute (Instituto Nacional do
Seguro Social), or INSS, the Employee’s Time in Service
Guarantee Fund (Fundo de Garantia do Tempo de Serviço),
or FGTS, and banks receiving such payments and other
activities of a similar nature.
Paragraph 3. The Board of Directors may authorize specific
acts that shall be binding on the Company subject to
signature of only one Officer or attorney-in-fact, or
furthermore establish authority and jurisdiction for a single
representative to perform such acts.
Paragraph 3. The Board of Directors may authorize specific
acts that shall be binding on the Company subject to
signature of only one Officer or attorney-in-fact, or
furthermore establish authority and jurisdiction for a single
representative to perform such acts.
Article 44. Powers of attorney shall always be granted or
revoked by two Officers, including the Chief Executive
Article 44. Powers of attorney shall always be granted or
revoked by two Officers, including the Chief Executive
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Officer, establishing the powers of the attorney-in-fact and,
except powers of attorney issued for judicial purposes, these
powers shall always be granted for a limited period.
Officer, establishing the powers of the attorney-in-fact and,
except powers of attorney issued for judicial purposes, these
powers shall always be granted for a limited period.
Section III - Ancillary Administrative Bodies Section III - Ancillary Administrative Bodies
Article 45. The Company shall have the following mandatory
committees to advise the Board of Directors:
Article 45. The Company shall have the following mandatory
committees to advise the Board of Directors:
(a) Audit Committee;
(b) Nominations and Corporate Governance Committee;
(c) Compensation Committee; and
(d) Risk Committee.
(a) Audit Committee;
(b) Nominations and Corporate Governance Committee;
(c) Compensation Committee; and
(d) Risk Committee.
Paragraph 1. The Committees shall likewise perform their
functions with regard to companies in which the Company
has an interest.
Paragraph 1. The Committees shall likewise perform their
functions with regard to companies in which the Company
has an interest.
Paragraph 2. The Board of Directors may establish additional
committees charged with advising Management on specific
matters of limited scope, for a limited time period. In this
event, the Board will also appoint the committee members.
Paragraph 2. The Board of Directors may establish additional
committees charged with advising Management on specific
matters of limited scope, for a limited time period. In this
event, the Board will also appoint the committee members.
Paragraph 3. The Board of Directors shall also regulate the
operation and establish the compensation of the committee
members.
Paragraph 3. The Board of Directors shall also regulate the
operation and establish the compensation of the committee
members.
Subsection I - Audit Committee Subsection I - Audit Committee
Article 46. The Audit Committee is established as a standing
board advisory committee composed of five independent
members. No more than two audit committee members shall
Article 46. The Audit Committee is established as a standing
board advisory committee composed of five independent
members. No more than two audit committee members shall
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be Independent Directors; the other members shall be
external independent members (“External Members”) and
fulfill the requirements set forth in paragraph 2 of this
Article. At least one audit committee member shall be
required to have recognized experience in corporate
accounting.
be Independent Directors; the other members shall be
external independent members (“External Members”) and
fulfill the requirements set forth in paragraph 2 of this
Article. At least one audit committee member shall be
required to have recognized experience in corporate
accounting.
Paragraph 1. The Nominations and Corporate Governance
Committee shall nominate the candidates for the Audit
Committee, whose members the Board of Directors shall
appoint for two-year terms, reelection for successive terms
being permitted, provided the combined terms shall not
exceed a maximum period of 10 years.
Paragraph 1. The Nominations and Corporate Governance
Committee shall nominate the candidates for the Audit
Committee, whose members the Board of Directors shall
appoint for two-year terms, reelection for successive terms
being permitted, provided the combined terms shall not
exceed a maximum period of 10 years.
Paragraph 2. The External Members of the Audit Committee
shall meet the following requirements:
Paragraph 2. The External Members of the Audit Committee
shall meet the following requirements:
(a) being knowledgeable or well experienced in auditing,
compliance and controls, accounting and taxation and
other related matters;
(a) being knowledgeable or well experienced in auditing,
compliance and controls, accounting and taxation and
other related matters;
(b) holding no position in the Board of Directors or
Executive Management Board of the Company or its
subsidiaries;
(b) holding no position in the Board of Directors or
Executive Management Board of the Company or its
subsidiaries;
(c) holding no interest in Company shares, including no
interest held by a spouse or domestic partner;
(c) holding no interest in Company shares, including no
interest held by a spouse or domestic partner;
(d) holding no controlling or minority interest in, and not
acting as, management member or employee of, a
shareholder of the Company or its subsidiaries;
(d) holding no controlling or minority interest in, and not
acting as, management member or employee of, a
shareholder of the Company or its subsidiaries;
(e) in the 12-month period preceding their appointment, not
having had ties with: (i) the Company, its subsidiaries or,
(e) in the 12-month period preceding their appointment, not
having had ties with: (i) the Company, its subsidiaries or,
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as the case may be, its direct or indirect controlling
shareholders or companies under common (direct or
indirect) control; (ii) any of the directors and officers of
the Company and its subsidiaries or, as the case may be,
their direct or indirect controlling shareholders; (iii)
holders of permits for access to markets the Company
operates; and (iv) a shareholder or Shareholder Group
holding an interest in 10% or more of the issued and
outstanding shares of voting stock of the Company; and
as the case may be, its direct or indirect controlling
shareholders or companies under common (direct or
indirect) control; (ii) any of the directors and officers of
the Company and its subsidiaries or, as the case may be,
their direct or indirect controlling shareholders; (iii)
holders of permits for access to markets the Company
operates; and (iv) a shareholder or Shareholder Group
holding an interest in 10% or more of the issued and
outstanding shares of voting stock of the Company; and
(f) not holding at the time, and in the 5 year period
preceding their appointment not having held, a position
as: (i) officer or employee of the Company, its
subsidiaries and affiliates or, as the case may be, its direct
or indirect controlling shareholders or companies under
common (direct or indirect) control; or (ii) member and
lead auditor of the audit team in charge of auditing the
financial information of the Company;
(f) not holding at the time, and in the 5 year period
preceding their appointment not having held, a position
as: (i) officer or employee of the Company, its
subsidiaries and affiliates or, as the case may be, its direct
or indirect controlling shareholders or companies under
common (direct or indirect) control; or (ii) member and
lead auditor of the audit team in charge of auditing the
financial information of the Company;
(g) not being a spouse, or lineal or collateral blood relative to
the third degree, or relative by affinity to the second
degree, of any of the persons alluded to in item (f) above;
and
(g) not being a spouse, or lineal or collateral blood relative to
the third degree, or relative by affinity to the second
degree, of any of the persons alluded to in item (f) above;
and
(h) fulfill the requirements set forth in paragraphs 4 and 5 of
Article 22 of these Bylaws and those of article 147 of
Brazilian Corporate Law*.
(h) fulfill the requirements set forth in paragraphs 4 and 5 of
Article 22 of these Bylaws and those of article 147 of
Brazilian Corporate Law*.
Paragraph 3. While in office, committee members may be
replaced in the following circumstances:
Paragraph 3. While in office, committee members may be
replaced in the following circumstances:
(a) death or resignation; (a) death or resignation;
(b) unjustified absence at 3 consecutive or 6 nonconsecutive (b) unjustified absence at 3 consecutive or 6 nonconsecutive
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meetings over a one-year period; or meetings over a one-year period; or
(c) pursuant to a well-founded decision of the Board of
Directors passed with the affirmative vote of at least five
(5) Directors, a majority of whom must fulfill the
requirements in paragraph 6 of Article 22.
(c) pursuant to a well-founded decision of the Board of
Directors passed with the affirmative vote of at least five
(5) Directors, a majority of whom must fulfill the
requirements in paragraph 6 of Article 22.
Paragraph 4. If a committee seat should become vacant, the
Board of Directors shall elect a person to conclude the term
of the outgoing member, as recommended by the
Nominations and Corporate Governance Committee.
Paragraph 4. If a committee seat should become vacant, the
Board of Directors shall elect a person to conclude the term
of the outgoing member, as recommended by the
Nominations and Corporate Governance Committee.
Paragraph 5. After stepping down, regardless of length of
time previously served, a former committee member may
only be reappointed to a committee seat after at least three
(3) years shall have expired from the end of the relevant
term.
Paragraph 5. After stepping down, regardless of length of
time previously served, a former committee member may
only be reappointed to a committee seat after at least three
(3) years shall have expired from the end of the relevant
term.
Article 47. Without prejudice to the provisions of Paragraphs
1 and 2 of this article, the Audit Committee shall report to the
Board of Directors. The responsibilities of the Audit
Committee include, among other things:
Article 47. Without prejudice to the provisions of Paragraphs
1 and 2 of this article, the Audit Committee shall report to the
Board of Directors. The responsibilities of the Audit
Committee include, among other things:
(a) making recommendations to the Board of Directors
regarding the retention or replacement of the
independent auditors of the Company, and advising the
Board on retaining the independent auditing firm to
perform non-audit services;
(a) making recommendations to the Board of Directors
regarding the retention or replacement of the
independent auditors of the Company, and advising the
Board on retaining the independent auditing firm to
perform non-audit services;
(b) supervising the activities of the independent auditors to
evaluate (i) their objectiveness (independence standard);
(ii) the quality of their services; and (iii) their suitability
vis-à-vis the Company’s requirements;
(b) supervising the activities of the independent auditors to
evaluate (i) their objectiveness (independence standard);
(ii) the quality of their services; and (iii) their suitability
vis-à-vis the Company’s requirements;
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(c) supervising the work of the internal auditors of the
Company and its subsidiaries, monitoring the
effectiveness and adequacy of the internal audit
structure, and the quality and integrity of internal and
independent audit processes, in addition to
recommending improvements, as may be necessary;
(c) supervising the work of the internal auditors of the
Company and its subsidiaries, monitoring the
effectiveness and adequacy of the internal audit
structure, and the quality and integrity of internal and
independent audit processes, in addition to
recommending improvements, as may be necessary;
(d) supervising the financial reporting activities of the
Company and the subsidiaries;
(d) supervising the financial reporting activities of the
Company and the subsidiaries;
(e) supervising the internal controls activities of the
Company and the subsidiaries;
(e) supervising the internal controls activities of the
Company and the subsidiaries;
(f) monitoring the quality and integrity of the quarterly
financial information, and of the annual and interim
financial statements prepared by the Company and its
subsidiaries, making recommendations as may be
necessary;
(f) monitoring the quality and integrity of the quarterly
financial information, and of the annual and interim
financial statements prepared by the Company and its
subsidiaries, making recommendations as may be
necessary;
(g) monitoring the quality and integrity of the internal
control mechanisms of the Company and the
subsidiaries, making recommendations to improve
policies, practices and processes, as may be necessary;
(g) monitoring the quality and integrity of the internal
control mechanisms of the Company and the
subsidiaries, making recommendations to improve
policies, practices and processes, as may be necessary;
(h) evaluating the effectiveness and adequacy of risk control
and risk management systems, including as related to
legal, tax and labor risks;
(h) evaluating the effectiveness and adequacy of risk control
and risk management systems, including as related to
legal, tax and labor risks;
(i) advising the Board of Directors, prior to release, about
the annual internal audit report that assesses the internal
controls structure and corporate risk management
system of the Company;
(i) advising the Board of Directors, prior to release, about
the annual internal audit report that assesses the internal
controls structure and corporate risk management
system of the Company;
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(j) on request of the Board of Directors, making
recommendations on management proposals to be put
forward to the Shareholders’ Meeting regarding changes
to the capital stock (share issues), issuance of debentures
or warrants, the capital expenditure budgets, dividend
distributions, transformation of corporate type, or
merger, consolidation or spin-off transactions; and
(j) on request of the Board of Directors, making
recommendations on management proposals to be put
forward to the Shareholders’ Meeting regarding changes
to the capital stock (share issues), issuance of debentures
or warrants, the capital expenditure budgets, dividend
distributions, transformation of corporate type, or
merger, consolidation or spin-off transactions; and
(k) monitoring the quality and integrity of data and
measurements released on the basis of adjusted financial
or other information, which add information
unanticipated in the customary financial reporting
structure;
(k) monitoring the quality and integrity of data and
measurements released on the basis of adjusted financial
or other information, which add information
unanticipated in the customary financial reporting
structure;
(l) monitoring and assessing risk exposures incurred by the
Company, for this purpose being permitted to request
detailed information on policies and processes related to
(i) management compensation; (ii) use of Company
assets; and (iii) expenses incurred by the Company;
(l) monitoring and assessing risk exposures incurred by the
Company, for this purpose being permitted to request
detailed information on policies and processes related to
(i) management compensation; (ii) use of Company
assets; and (iii) expenses incurred by the Company;
(m) working in cooperation with management and the
internal auditors to monitor and assess the internal audit
department of the Company, and the adequacy of
transactions with related parties carried out by the
Company and the related documentation;
(m) working in cooperation with management and the
internal auditors to monitor and assess the internal audit
department of the Company, and the adequacy of
transactions with related parties carried out by the
Company and the related documentation;
(n) advising the Board of Directors on matters the directors
may refer to the committee and any other matter the
latter may consider of importance.
(n) advising the Board of Directors on matters the directors
may refer to the committee and any other matter the
latter may consider of importance.
Paragraph 1. The Audit Committee shall prepare an annual
report in summary form which will be released in
conjunction with the annual financial statements, which
report shall contain at least the following information: (i) the
Paragraph 1. The Audit Committee shall prepare an annual
report in summary form which will be released in
conjunction with the annual financial statements, which
report shall contain at least the following information: (i) the
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activities performed in the period, its findings and
recommendations; (ii) an evaluation of the effectiveness of
the internal controls and risk management systems adopted
by the Company; (iii) a description of recommendations
made to management and evidence of implementation; (iv)
an evaluation of the effectiveness of both internal and
independent audit work; (v) an evaluation of the quality of
the financial reports and the internal audit report regarding
internal controls and risk management processes prepared
for the period; and (vi) any instance denoting significant
disagreement between the committee and management or
the independent auditors relative to the financial statements
of the Company.
activities performed in the period, its findings and
recommendations; (ii) an evaluation of the effectiveness of
the internal controls and risk management systems adopted
by the Company; (iii) a description of recommendations
made to management and evidence of implementation; (iv)
an evaluation of the effectiveness of both internal and
independent audit work; (v) an evaluation of the quality of
the financial reports and the internal audit report regarding
internal controls and risk management processes prepared
for the period; and (vi) any instance denoting significant
disagreement between the committee and management or
the independent auditors relative to the financial statements
of the Company.
Paragraph 2. The Coordinator of the Audit Committee or, in
his absence or inability, another committee member
designated by him, shall meet with the Board of Directors at
least on a quarterly basis to report on the committee
activities. Where necessary or convenient, the Coordinator
or, as the case may be, his designated substitute, shall invite
other committee members to join him at the meeting with the
Board.
Paragraph 2. The Coordinator of the Audit Committee or, in
his absence or inability, another committee member
designated by him, shall meet with the Board of Directors at
least on a quarterly basis to report on the committee
activities. Where necessary or convenient, the Coordinator
or, as the case may be, his designated substitute, shall invite
other committee members to join him at the meeting with the
Board.
Paragraph 3. The Audit Committee shall be assured proper
channels to receive claims of improper practices within the
scope of the activities it oversees, including confidential,
internal or external claims.
Paragraph 3. The Audit Committee shall be assured proper
channels to receive claims of improper practices within the
scope of the activities it oversees, including confidential,
internal or external claims.
Article 48. The Audit Committee shall approve, by a majority
of votes, the proposed Regulation to govern its own
operation, which it shall forwarded for approval by the
Board of Directors.
Article 48. The Audit Committee shall approve, by a majority
of votes, the proposed Regulation to govern its own
operation, which it shall forwarded for approval by the
Board of Directors.
Sole paragraph. In performing its functions, the Audit Sole paragraph. In performing its functions, the Audit
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Committee shall be granted access to any information it may
require. The Audit Committee shall be functionally
autonomous and operate on funds appropriated in the
budget, as approved by the Board of Directors, so it may
carry out or order, or retain external, independent
consultants or specialists to perform, special evaluations,
assessments or investigations within the realm of the
Committee’s responsibilities.
Committee shall be granted access to any information it may
require. The Audit Committee shall be functionally
autonomous and operate on funds appropriated in the
budget, as approved by the Board of Directors, so it may
carry out or order, or retain external, independent
consultants or specialists to perform, special evaluations,
assessments or investigations within the realm of the
Committee’s responsibilities.
Subsection II - Compensation Committee Subsection II - Compensation Committee
Article 49. The Board of Directors shall establish a standing
Compensation Committee which shall be composed of three
members of the Board of Directors, two of whom shall be
Independent Directors.
Article 49. The Board of Directors shall establish a standing
Compensation Committee which shall be composed of three
members of the Board of Directors, two of whom shall be
Independent Directors.
Paragraph 1. The Compensation Committee shall be
responsible for:
Paragraph 1. The Compensation Committee shall be
responsible for:
(a) recommending to the Board of Directors, and revising
annually, the standards and guidelines that shape the
policy, and the policy concerning compensation of the
Company’s managers and of the Committee members
and members of other board advisory groups
(a) recommending to the Board of Directors, and revising
annually, the standards and guidelines that shape the
policy, and the policy concerning compensation of the
Company’s managers and of the Committee members
and members of other board advisory groups
(b) annually proposing to the Board of Directors the
compensation of directors and officers of the Company,
for submission to the Shareholders’ Meeting;
(b) annually proposing to the Board of Directors the
compensation of directors and officers of the Company,
for submission to the Shareholders’ Meeting;
(c) reviewing and submitting to the Board of Directors the
goals and targets related to the Chief Executive Officer
compensation plan, as well as evaluating his or her
performance;
(c) reviewing and submitting to the Board of Directors the
goals and targets related to the Chief Executive Officer
compensation plan, as well as evaluating his or her
performance;
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(d) reviewing and submitting to the Board the Chief
Executive Officer proposal on the goals and targets
concerning the senior executive compensation plans, and
assessing the evaluation process implemented by the
Chief Executive Officer with respect to his or her
subordinates, monitoring implementation of conclusions
and resulting actions;
(d) reviewing and submitting to the Board the Chief
Executive Officer proposal on the goals and targets
concerning the senior executive compensation plans, and
assessing the evaluation process implemented by the
Chief Executive Officer with respect to his or her
subordinates, monitoring implementation of conclusions
and resulting actions;
(e) take action as may be necessary for the Company to
timely plan and adequately prepare for the succession of
its executives, in particular for the Chief Executive Officer
and the principal senior executives; and
(e) take action as may be necessary for the Company to
timely plan and adequately prepare for the succession of
its executives, in particular for the Chief Executive Officer
and the principal senior executives; and
(f) take action to ensure the Company adopts a
competencies and leadership model which is in line with
its strategic plan, including with regard to talent
attraction, retention and motivation.
(f) take action to ensure the Company adopts a
competencies and leadership model which is in line with
its strategic plan, including with regard to talent
attraction, retention and motivation.
Paragraph 2. The Chief Executive Officer will be invited to
participate in Compensation Committee meetings as often as
may be necessary.
Paragraph 2. The Chief Executive Officer will be invited to
participate in Compensation Committee meetings as often as
may be necessary.
Subsection III – Nominations and Corporate Governance
Committee
Subsection III – Nominations and Corporate Governance
Committee
Article 50. The Board of Directors shall establish a standing
Nominations and Corporate Governance Committee, which
shall comprise three members, at least two of them being
independent members.
Article 50. The Board of Directors shall establish a standing
Nominations and Corporate Governance Committee, which
shall comprise three members, at least two of them being
independent members.
Sole paragraph. With the main purpose of preserving the
credibility and legitimacy of Company and its subsidiaries,
the Nominations and Corporate Governance Committee
Sole paragraph. With the main purpose of preserving the
credibility and legitimacy of Company and its subsidiaries,
the Nominations and Corporate Governance Committee
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shall: shall:
(a) Identify, recruit and nominate potential board members
for election by the Shareholders’ Meeting, due regard
being given to applicable legal requirements and
requirements of these Bylaws;
(a) Identify, recruit and nominate potential board members
for election by the Shareholders’ Meeting, due regard
being given to applicable legal requirements and
requirements of these Bylaws;
(b) Identify, recruit and nominate potential Board Advisory
Committee members for appointment by the Board of
Directors persons, due regard being given to applicable
legal requirements and requirements of these Bylaws;
(b) Identify, recruit and nominate potential Board Advisory
Committee members for appointment by the Board of
Directors persons, due regard being given to applicable
legal requirements and requirements of these Bylaws;
(c) identify, recruit and nominate potential replacements to
fill in vacant Corporate Governance Committee seats,
whose term of office shall extend through to the date of
the subsequent Shareholders’ Meeting;
(c) identify, recruit and nominate potential replacements to
fill in vacant Corporate Governance Committee seats,
whose term of office shall extend through to the date of
the subsequent Shareholders’ Meeting;
(d) Make recommendations to the Board of Directors about
membership and operations of the Board;
(d) Make recommendations to the Board of Directors about
membership and operations of the Board;
(e) Make recommendations to the Board of Directors about
advisory committee or work groups (commission)
membership, in addition to conducting periodic reviews
of the competencies and qualifications required from
Board members, including as to diversity of expertise
and leadership style;
(e) Make recommendations to the Board of Directors about
advisory committee or work groups (commission)
membership, in addition to conducting periodic reviews
of the competencies and qualifications required from
Board members, including as to diversity of expertise
and leadership style;
(f) Support the Board Chair in organizing a formal and
periodic self-evaluation process both by the Chair and by
the Board as a collective body;
(f) Support the Board Chair in organizing a formal and
periodic self-evaluation process both by the Chair and by
the Board as a collective body;
(g) Support the Board of Directors in the process of
recruiting and nominating the Chief Executive Officer, in
addition to supporting the latter in recruiting and
(g) Support the Board of Directors in the process of
recruiting and nominating the Chief Executive Officer, in
addition to supporting the latter in recruiting and
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nominating the other Executive Officers; nominating the other Executive Officers;
(h) Promote and monitor adoption of best recommended
corporate governance practices, as well as monitoring
effectiveness of corporate governance processes,
suggesting changes, updates and improvements, as
necessary;
(h) Promote and monitor adoption of best recommended
corporate governance practices, as well as monitoring
effectiveness of corporate governance processes,
suggesting changes, updates and improvements, as
necessary;
(i) Prepare or update, for approval by the Board of
Directors, the Corporate Governance Guidelines and the
governance documents of the Company (Regulations,
Codes and Policies);
(i) Prepare or update, for approval by the Board of
Directors, the Corporate Governance Guidelines and the
governance documents of the Company (Regulations,
Codes and Policies);
(j) Prepare, for approval by the Board of Directors, the
Code of Conduct of the Company, which shall apply to
directors, executive officers, employees and other
collaborators and providers of the Company and its
subsidiaries. The Code of Conduct shall be prepared
based on the following principles and Company values:
ethical conduct, equality of rights, respect for diversity
and accountability;
(j) Prepare, for approval by the Board of Directors, the
Code of Conduct of the Company, which shall apply to
directors, executive officers, employees and other
collaborators and providers of the Company and its
subsidiaries. The Code of Conduct shall be prepared
based on the following principles and Company values:
ethical conduct, equality of rights, respect for diversity
and accountability;
(k) Promote and monitor practices aimed at preserving
ethical and democratic values, while ensuring
transparency, visibility and access to markets managed
by the Company and its subsidiaries;
(k) Promote and monitor practices aimed at preserving
ethical and democratic values, while ensuring
transparency, visibility and access to markets managed
by the Company and its subsidiaries;
(l) Promote and monitor practices for dissemination
amongst all Company constituencies of the Company
values and principles of protection of human rights,
respect for diversity of gender, race and faith, while
promoting citizenship and social inclusion rights;
(l) Promote and monitor practices for dissemination
amongst all Company constituencies of the Company
values and principles of protection of human rights,
respect for diversity of gender, race and faith, while
promoting citizenship and social inclusion rights;
(m) Evaluate and make strategy recommendations that add (m) Evaluate and make strategy recommendations that add
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or maintain value to the institutional image of the
Company; and
or maintain value to the institutional image of the
Company; and
(n) Monitor business from the perspectives of sustainability
and social responsibility, whereas supporting the Board
in perfecting the Company vision in this regard.
(n) Monitor business from the perspectives of sustainability
and social responsibility, whereas supporting the Board
in perfecting the Company vision in this regard.
Subsection IV – Risk Committee Subsection IV – Risk Committee
Article 51. The Board of Directors shall establish a standing
Risk Committee composed of at least four (4) members, all of
them Directors, whether or not Independent.
Article 51. The Board of Directors shall establish a standing
Risk Committee composed of at least four (4) members, all of
them Directors, whether or not Independent.
Sole paragraph. The Risk Committee shall be responsible for: Sole paragraph. The Risk Committee shall be responsible for:
(a) assessing and monitoring exposure to risks intrinsic to
the business activities of the Company, with particular
focus on structural and strategic risk management;
(a) assessing and monitoring exposure to risks intrinsic to
the business activities of the Company, with particular
focus on structural and strategic risk management;
(b) assessing and recommending the Company’s risk
management guidelines and strategies; and
(b) assessing and recommending the Company’s risk
management guidelines and strategies; and
(c) conducting periodic reassessments of the risk
management strategies adopted by the Company.
(c) conducting periodic reassessments of the risk
management strategies adopted by the Company.
CHAPTER V CHAPTER V
FISCAL COUNCIL FISCAL COUNCIL
Article 52. The Company shall have a Fiscal Council, which
shall be comprised of three to five members, and the same
number of alternates, with the powers and authority granted
by Brazilian Corporate Law* and operating on a non-
Article 52. The Company shall have a Fiscal Council, which
shall be comprised of three to five members, and the same
number of alternates, with the powers and authority granted
by Brazilian Corporate Law* and operating on a non-
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permanent basis. The Fiscal Council shall only be instated by
the Shareholders’ Meeting, upon request by shareholders
representing the percentage required by law or CVM
regulations.
permanent basis. The Fiscal Council shall only be instated by
the Shareholders’ Meeting, upon request by shareholders
representing the percentage required by law or CVM
regulations.
Paragraph 1. Fiscal Council members shall be elected by the
Shareholders’ Meeting, which approves its creation. Their
term of office shall expire at the time of the Annual
Shareholders’ Meeting following their election.
Paragraph 1. Fiscal Council members shall be elected by the
Shareholders’ Meeting, which approves its creation. Their
term of office shall expire at the time of the Annual
Shareholders’ Meeting following their election.
Paragraph 2. If the Company is at any time controlled by a
shareholder or controlling group, as defined in Article 116 of
Brazilian Corporate Law*, Fiscal Council member elections
shall be subject to paragraph 4, Article 161, of Brazilian
Corporate Law*.
Paragraph 2. If the Company is at any time controlled by a
shareholder or controlling group, as defined in Article 116 of
Brazilian Corporate Law*, Fiscal Council member elections
shall be subject to paragraph 4, Article 161, of Brazilian
Corporate Law*.
Paragraph 3. After the Fiscal Council is instated, instatement
in office shall be registered in a specific book, signed by the
member of the Fiscal Council taking office, and by previous
execution of the Fiscal Council Member Statement of
Consent according to the terms of the Novo Mercado Listing
Rules.
Paragraph 3. After the Fiscal Council is instated, instatement
in office shall be registered in a specific book, signed by the
member of the Fiscal Council taking office, and by previous
execution of the Fiscal Council Member Statement of
Consent according to the terms of the Novo Mercado Listing
Rules.
Paragraph 4. Members of the Fiscal Council shall be replaced
by their respective alternates, when absent they are or
prevented from exercising the position. If a seat on the Fiscal
Council falls vacant, the respective alternate shall take up the
position. If no alternate is available, a Shareholders’ Meeting
shall be convened to elect a member to conclude the term of
office.
Paragraph 4. Members of the Fiscal Council shall be replaced
by their respective alternates, when absent they are or
prevented from exercising the position. If a seat on the Fiscal
Council falls vacant, the respective alternate shall take up the
position. If no alternate is available, a Shareholders’ Meeting
shall be convened to elect a member to conclude the term of
office.
Paragraph 5. Members of the Fiscal Council shall receive
compensation to be established by the Shareholders’
Meeting, which, for each active member, shall be now lower
Paragraph 5. Members of the Fiscal Council shall receive
compensation to be established by the Shareholders’
Meeting, which, for each active member, shall be now lower
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than 10% of the average amount paid to each Officer, not
including benefits, representation fees and profit-sharing.
than 10% of the average amount paid to each Officer, not
including benefits, representation fees and profit-sharing.
CHAPTER VI CHAPTER VI
FISCAL YEAR, FINANCIAL STATEMENTS AND
EARNINGS
FISCAL YEAR, FINANCIAL STATEMENTS AND
EARNINGS
Article 53. The financial year shall coincide with the calendar
year. The financial statements required by law shall be
drawn up at the end of each financial year.
Article 53. The financial year shall coincide with the calendar
year. The financial statements required by law shall be
drawn up at the end of each financial year.
Paragraph 1. Alongside the financial statements for the year,
the Company management bodies shall present the Annual
Shareholders’ Meeting a proposal on the intended use of net
profits, in accordance with the rules of these Bylaws and
Brazilian Corporate Law*.
Paragraph 1. Alongside the financial statements for the year,
the Company management bodies shall present the Annual
Shareholders’ Meeting a proposal on the intended use of net
profits, in accordance with the rules of these Bylaws and
Brazilian Corporate Law*.
Paragraph 2. In addition to the financial statements for the
year, the Company shall also prepare semi-annual financial
statements and produce monthly balance sheets.
Paragraph 2. In addition to the financial statements for the
year, the Company shall also prepare semi-annual financial
statements and produce monthly balance sheets.
Article 54. Any accumulated losses and the income tax
provision shall be deducted from the yearly profit before any
allocation to profit sharing payment can be made.
Article 54. Any accumulated losses and the income tax
provision shall be deducted from the yearly profit before any
allocation to profit sharing payment can be made.
Sole paragraph. Provided the deductions referred to in this
Article shall have been made, the Shareholders’ Meeting may
allocate to profit sharing payment attributable to
management up to 10% of the remaining net income,
whereas giving regard to the restrictions foreseen by
Brazilian Corporate Law* and these Bylaws.
Sole paragraph. Provided the deductions referred to in this
Article shall have been made, the Shareholders’ Meeting may
allocate to profit sharing payment attributable to
management up to 10% of the remaining net income,
whereas giving regard to the restrictions foreseen by
Brazilian Corporate Law* and these Bylaws.
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Article 55. After the deductions contemplated in the
preceding Article, 5% of the net profit for the year shall be
used to establish the Legal Reserve, due regard given to the
thresholds established by law.
Article 55. After the deductions contemplated in the
preceding Article, 5% of the net profit for the year shall be
used to establish the Legal Reserve, due regard given to the
thresholds established by law.
Paragraph 1. After the allocation to the Legal Reserve, the
net profit for the year, as adjusted for allocations to
contingency reserves or reversals thereof, if any, shall be
allocated in the following order: (i) at least 25% for
distribution of the mandatory dividend to shareholders
(which may be limited to the amount of the realized net
profit for the year, provided the difference shall be recorded
in an unrealized profit reserve); and (ii) without prejudice to
the provision of paragraph 3 of this Article, all net profit
thus remaining shall be allocated to bylaws reserves for
future investments in the business and also for the special
safeguard funds and other clearing and settlement
mechanisms adopted by the Company to ensure full
completion (clearing and settlement) to transactions carried
out on its trading platforms or registered in its systems.
Paragraph 1. After the allocation to the Legal Reserve, the
net profit for the year, as adjusted for allocations to
contingency reserves or reversals thereof, if any, shall be
allocated in the following order: (i) at least 25% for
distribution of the mandatory dividend to shareholders
(which may be limited to the amount of the realized net
profit for the year, provided the difference shall be recorded
in an unrealized profit reserve); and (ii) without prejudice to
the provision of paragraph 3 of this Article, all net profit
thus remaining shall be allocated to bylaws reserves for
future investments in the business and also for the special
safeguard funds and other clearing and settlement
mechanisms adopted by the Company to ensure full
completion (clearing and settlement) to transactions carried
out on its trading platforms or registered in its systems.
Paragraph 2. The total allocations to bylaws reserves
contemplated in (ii) of the preceding paragraph shall not
exceed the capital stock amount.
Paragraph 2. The total allocations to bylaws reserves
contemplated in (ii) of the preceding paragraph shall not
exceed the capital stock amount.
Paragraph 3. Where in any year the Board of Directors
deems the total amount allocated to bylaws reserves
pursuant to paragraph 1 of this Article to be sufficient to
meet the purposes thereof, it may: (i) propose net profit
allocations to bylaws reserves at lower amounts than
otherwise required under in item (ii) of paragraph 1 of this
Article; and/or (ii) propose a reversal of previously reserved
funds for the same to be distributed as dividends to the
Paragraph 3. Where in any year the Board of Directors
deems the total amount allocated to bylaws reserves
pursuant to paragraph 1 of this Article to be sufficient to
meet the purposes thereof, it may: (i) propose net profit
allocations to bylaws reserves at lower amounts than
otherwise required under in item (ii) of paragraph 1 of this
Article; and/or (ii) propose a reversal of previously reserved
funds for the same to be distributed as dividends to the
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shareholders. shareholders.
Paragraph 4. Upon giving due regard to the allocations
contemplated in paragraph 1 of this Article, and as permitted
under Article 196 of Brazilian Corporate Law*, the
Shareholders’ Meeting may decide to retain a portion of the
yearly net profit consistent with the allocations foreseen in a
previously approved capital expenditure budget.
Paragraph 4. Upon giving due regard to the allocations
contemplated in paragraph 1 of this Article, and as permitted
under Article 196 of Brazilian Corporate Law*, the
Shareholders’ Meeting may decide to retain a portion of the
yearly net profit consistent with the allocations foreseen in a
previously approved capital expenditure budget.
Paragraph 5. The mandatory dividend set forth in item (i) of
paragraph 1 of this Article may be suspended in any year in
which the Board of Directors reports at the Annual
Shareholders’ Meeting that the distribution would be
inadvisable given the Company’s financial condition. The
Fiscal Council, if active, shall issue an opinion on the matter,
and management, acting within five days after the
Shareholders’ Meeting, shall file a reasoned report with the
CVM justifying the recommendation.
Paragraph 5. The mandatory dividend set forth in item (i) of
paragraph 1 of this Article may be suspended in any year in
which the Board of Directors reports at the Annual
Shareholders’ Meeting that the distribution would be
inadvisable given the Company’s financial condition. The
Fiscal Council, if active, shall issue an opinion on the matter,
and management, acting within five days after the
Shareholders’ Meeting, shall file a reasoned report with the
CVM justifying the recommendation.
Paragraph 6. Any profits retained pursuant to paragraph 5
of this Article shall be recorded in a special reserve and, if
not absorbed by losses in subsequent years, shall be paid out
as dividends, as soon as the Company’s financial condition
so allows.
Paragraph 6. Any profits retained pursuant to paragraph 5
of this Article shall be recorded in a special reserve and, if
not absorbed by losses in subsequent years, shall be paid out
as dividends, as soon as the Company’s financial condition
so allows.
Article 56. Upon resolution of the Board of Directors, the
Company may:
Article 56. Upon resolution of the Board of Directors, the
Company may:
(a) distribute dividends based on profits ascertained in the
semi-annual balance sheets;
(a) distribute dividends based on profits ascertained in the
semi-annual balance sheets;
(b) prepare balance sheets for periods of shorter than six
months and distribute dividends based on the profits
ascertained therein, provided that total dividends paid
(b) prepare balance sheets for periods of shorter than six
months and distribute dividends based on the profits
ascertained therein, provided that total dividends paid
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in each semi-annual period of the financial year do not
exceed the capital reserves mentioned in Article 182,
paragraph 1, of Brazilian Corporate Law*;
in each semi-annual period of the financial year do not
exceed the capital reserves mentioned in Article 182,
paragraph 1, of Brazilian Corporate Law*;
(c) distribute intermediate dividends based on retained
earnings account or existing profit reserves in the most
recent annual or semi-annual balance sheets; and
(c) distribute intermediate dividends based on retained
earnings account or existing profit reserves in the most
recent annual or semi-annual balance sheets; and
(d) credit or pay to the shareholders, by resolution of the
Board of Directors, interest on shareholders’ capital,
which shall be ascribed to the value of dividends to be
distributed by the Company, and shall be an integral
part thereof for all legal purposes.
(d) credit or pay to the shareholders, by resolution of the
Board of Directors, interest on shareholders’ capital,
which shall be ascribed to the value of dividends to be
distributed by the Company, and shall be an integral
part thereof for all legal purposes.
Article 57. Shareholders which not receive or claim
dividends within a period of three years counted from the
date they were made available for distribution shall lose the
rights to receive such dividends, which shall revert to the
Company.
Article 57. Shareholders which not receive or claim
dividends within a period of three years counted from the
date they were made available for distribution shall lose the
rights to receive such dividends, which shall revert to the
Company.
CHAPTER VII CHAPTER VII
SHAREHOLDERS’ INTEREST MONITORING
SHAREHOLDERS’ INTEREST MONITORING
Article 58. Without prejudice to the other provisions of these
Bylaws, the Company, represented by the Investor Relations
Officer, shall monitor changes in shareholder ownership
interest in order to prevent and, as the case may be, report on
violations of these Bylaws (as per paragraph 1 of this
Article), and present motion for the Shareholders’ Meeting to
impose penalty as provided in Article 71 of these Bylaws.
Article 58. Without prejudice to the other provisions of these
Bylaws, the Company, represented by the Investor Relations
Officer, shall monitor changes in shareholder ownership
interest in order to prevent and, as the case may be, report on
violations of these Bylaws (as per paragraph 1 of this
Article), and present motion for the Shareholders’ Meeting to
impose penalty as provided in Article 71 of these Bylaws.
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Paragraph 1. If, at any time, the Investor Relations Officer
identifies a violation of any of the share limit restrictions
relating to any shareholder or Shareholder Group limits, he
or she must, within a maximum period of 30 days, report
such circumstances on the Company website on the Internet
and report to: (i) the Chair of the Board of Directors; (ii) the
Chief Executive Officer; (iii) the members of the Fiscal
Council, if instated; (iv) BM&FBOVESPA; and (v) CVM.
Paragraph 1. If, at any time, the Investor Relations Officer
identifies a violation of any of the share limit restrictions
relating to any shareholder or Shareholder Group limits, he
or she must, within a maximum period of 30 days, report
such circumstances on the Company website on the Internet
and report to: (i) the Chair of the Board of Directors; (ii) the
Chief Executive Officer; (iii) the members of the Fiscal
Council, if instated; (iv) BM&FBOVESPA; and (v) CVM.
Paragraph 2. The Investor Relations Officer, by his own
discretion or in fulfillment to a request of a regulatory entity,
may require that any shareholder or Shareholder Group
provides information on ones or the group members’ direct
and indirect ownership structure, composition of the group,
including as the case may be, controlling block or corporate
group (whether in fact or by law) in which it or each of them
belongs.
Paragraph 2. The Investor Relations Officer, by his own
discretion or in fulfillment to a request of a regulatory entity,
may require that any shareholder or Shareholder Group
provides information on ones or the group members’ direct
and indirect ownership structure, composition of the group,
including as the case may be, controlling block or corporate
group (whether in fact or by law) in which it or each of them
belongs.
CHAPTER VIII CHAPTER VIII
DISPOSITION OF CONTROL; GOING PRIVATE PROCESS
(CANCELLATION OF PUBLIC COMPANY
REGISTRATION); DELISTING FROM NOVO MERCADO;
PROTECTION OF WIDESPREAD OWNERSHIP
DISPOSITION OF CONTROL; GOING PRIVATE PROCESS
(CANCELLATION OF PUBLIC COMPANY
REGISTRATION); DELISTING FROM NOVO MERCADO;
PROTECTION OF WIDESPREAD OWNERSHIP
Section I - Disposition of Control Section I - Disposition of Control
Article 59. A Disposition of Control, whether implemented
in a single or a series of successive transactions, must be
agreed under a condition precedent or dissolving condition
that the Acquirer of Control undertakes to conduct tender
Article 59. A Disposition of Control, whether implemented
in a single or a series of successive transactions, must be
agreed under a condition precedent or dissolving condition
that the Acquirer of Control undertakes to conduct a tender
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offer to purchase the shares of all other shareholders in
accordance with the conditions and deadlines prescribed by
applicable legislation and in the Novo Mercado Listing Rules,
so as to ensure all shareholders are extended equal treatment
as afforded the Selling Controlling Shareholder.
offer to purchase the shares of all other shareholders in
accordance with the conditions and deadlines prescribed by
applicable legislation, and in the Novo Mercado Listing Rules,
so as to ensure all shareholders are extended equal treatment
as afforded the Selling Controlling Shareholder.
Article 60. A tender offer shall likewise be required pursuant
to Article 59 (i) where warrants or other securities or
instruments convertible into, or exercisable or exchangeable
for shares issued by the Company are sold or transferred in
any way which implies a Disposition of Control; or (ii) where
Control over a Controlling Shareholder is disposed of, in
which case the Selling Controlling Shareholder shall be
required to disclose the selling price to BM&FBOVESPA and
provide verifiable documentary evidence of such price.
Article 60. A tender offer shall likewise be required pursuant
to Article 59 (i) where warrants or other securities or
instruments convertible into, or exercisable or exchangeable
for shares issued by the Company are sold or transferred in
any way which implies a Disposition of Control; or (ii) where
Control over a Controlling Shareholder is disposed of, in
which case the Selling Controlling Shareholder shall be
required to disclose the selling price to BM&FBOVESPA and
provide verifiable documentary evidence of such price.
Article 61. Any person acquiring Control under a private
transaction entered into with a Controlling Shareholder
(regardless of the number of shares thus acquired) shall be
required to (i) carry out a tender offer in the manner
prescribed in Article 59, and (ii) refund selling counterparties
from whom it may have purchased shares in stock market
transactions over the six months preceding the date of
acquisition of Control, the difference between the selling
price per share and the tender offer bid price per share, as
adjusted for inflation through to the refund date. The
aggregate refundable amount shall be allocated amongst the
relevant selling counterparties, in proportion to the daily net
selling positions attributable to each such counterparty over
the relevant six-month period, and BM&FBOVESPA shall
implement the refund process in accordance with its own
rules.
Article 61. Any person acquiring Control under a private
transaction entered into with a Controlling Shareholder
(regardless of the number of shares thus acquired) shall be
required to (i) carry out a tender offer in the manner
prescribed in Article 59, and (ii) refund selling counterparties
from whom it may have purchased shares in stock market
transactions over the six months preceding the date of
acquisition of Control, the difference between the selling
price per share and the tender offer bid price per share, as
adjusted for inflation through to the refund date. The
aggregate refundable amount shall be allocated amongst the
relevant selling counterparties, in proportion to the daily net
selling positions attributable to each such counterparty over
the relevant six-month period, and BM&FBOVESPA shall
implement the refund process in accordance with its own
rules.
Article 62. The Company shall refrain from registering any Article 62. The Company shall refrain from registering any
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share transfer to an Acquirer of Control or subsequent
holders of Control until such time as the latter two shall have
signed the required Instrument of Adherence to the Novo
Mercado Listing Rules.
share transfer to an Acquirer of Control or subsequent
holders of Control until such time as the latter two shall have
signed the required Instrument of Adherence to the Novo
Mercado Listing Rules.
Paragraph 1. The Company shall not register any
Shareholders’ Agreement regulating the exercise of Control
until such time as the parties thereto shall have signed the
Instrument of Adherence to the Novo Mercado Listing Rules
referred to in the main provision of this Article.
Paragraph 1. The Company shall not register any
Shareholders’ Agreement regulating the exercise of Control
until such time as the parties thereto shall have signed the
Instrument of Adherence to the Novo Mercado Listing Rules
referred to in the main provision of this Article.
Paragraph 2. Within the six-month period following any
Disposition of Control and the ensuing tender offer
conducted pursuant to Article 59 above, the Acquirer of
Control shall, as the case may be, take appropriate action to
restore the minimum free float mandated by the Novo
Mercado Listing Rules.
Paragraph 2. Within the six-month period following any
Disposition of Control and the ensuing tender offer
conducted pursuant to Article 59 above, the Acquirer of
Control shall, as the case may be, take appropriate action to
restore the minimum free float mandated by the Novo
Mercado Listing Rules.
Article 63. Where shareholders convening in a Shareholders’
Meeting approve: (i) a going private process (and
deregistration as a public company), the Company or the
Controlling Shareholder(s), if any, shall conduct a tender
offer to purchase all other shares, wherein the bid price shall
at least equal the Economic Value per share, as determined
pursuant to a valuation report prepared according to
paragraphs 1 to 3 of this Article, due regard given to other
applicable legal and regulatory requirements; or (ii) a
delisting from the Novo Mercado segment either for the shares
to trade on another market or listing segment, or because the
unlisted surviving company in a corporate restructuring
process failed to list its shares to trade on the Novo Mercado
within one hundred and twenty (120) days after the date of
the meeting which first approved the restructuring process,
then the Controlling Shareholder shall be required to
Article 63. Where shareholders convening in a Shareholders’
Meeting approve: (i) a going private process (and
deregistration as a public company), the Company or the
Controlling Shareholder(s), if any, shall conduct a tender
offer to purchase all other shares, wherein the bid price shall
at least equal the Economic Value per share, as determined
pursuant to a valuation report prepared according to
paragraphs 1 to 3 of this Article, due regard given to other
applicable legal and regulatory requirements; or (ii) a
delisting from the Novo Mercado segment either for the shares
to trade on another market or listing segment, or because the
unlisted surviving company in a corporate restructuring
process failed to list its shares to trade on the Novo Mercado
within one hundred and twenty (120) days after the date of
the meeting which first approved the restructuring process,
then the Controlling Shareholder shall be required to
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conduct a tender offer for all other shares at a bid price at
least equal to the Economic Value per share, as determined
pursuant to a valuation report prepared according to
paragraphs 1 to 3 of this Article, and giving regard to
applicable legal and regulatory requirements.
conduct a tender offer for all other shares at a bid price at
least equal to the Economic Value per share, as determined
pursuant to a valuation report prepared according to
paragraphs 1 to 3 of this Article, and giving regard to
applicable legal and regulatory requirements.
Paragraph 1. Any valuation report required under the main
provision of this Article shall be prepared by a verifiably
experienced, independent, specialist valuation firm, which is
not susceptible to being influenced by the decisions of the
Board or Management, the Company or the Controlling
Shareholder(s), if any. In addition, the valuation report shall
meet the requirements of paragraph 1 of Article 8 of Brazilian
Corporate Law* and include the liability clause provided
under paragraph 6 of that legal provision.
Paragraph 1. Any valuation report required under the main
provision of this Article shall be prepared by a verifiably
experienced, independent, specialist valuation firm, which is
not susceptible to being influenced by the decisions of the
Board or Management, the Company or the Controlling
Shareholder(s), if any. In addition, the valuation report shall
meet the requirements of paragraph 1 of Article 8 of Brazilian
Corporate Law* and include the liability clause provided
under paragraph 6 of that legal provision.
Paragraph 2. The Shareholders’ Meeting has exclusive
discretion to select a specialized firm or institution to
determine the Economic Value of the Company from a list of
the three names presented by the Board of Directors. The
decision shall pass by a majority of affirmative votes cast by
shareholders present at the Shareholders’ Meeting,
disregarding blank votes. Attendance by holders of record
representing at least 20% of all Outstanding Shares shall
constitute valid quorum to convene the Shareholders’
Meeting on first call, provided that, on second call, the
meeting may be held with any number of attendee
shareholders.
Paragraph 2. The Shareholders’ Meeting has exclusive
discretion to select a specialized firm or institution to
determine the Economic Value of the Company from a list of
the three names presented by the Board of Directors. The
decision shall pass by a majority of affirmative votes cast by
shareholders present at the Shareholders’ Meeting,
disregarding blank votes. Attendance by holders of record
representing at least 20% of all Outstanding Shares shall
constitute valid quorum to convene the Shareholders’
Meeting on first call, provided that, on second call, the
meeting may be held with any number of attendee
shareholders.
Paragraph 3. The costs of the valuation report shall be borne
in full by the offeror.
Paragraph 3. The costs of the valuation report shall be borne
in full by the offeror.
Article 64. Absent a Controlling Shareholder, if shareholders
convening in a Shareholders’ Meeting approve a delisting
Article 64. Absent a Controlling Shareholder, if shareholders
convening in a Shareholders’ Meeting approve a delisting
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from the Novo Mercado segment whether for the shares to
trade on some other market or listing segment, or because
the unlisted surviving company in a corporate restructuring
process has failed to have its shares listed to trade on the
Novo Mercado within the assigned deadline (such as provided
in item (ii) of the main provision of Article 63 above), then
any such delisting shall be contingent on a tender offer being
conducted under the same terms and conditions established
under Article 63 above.
from the Novo Mercado segment whether for the shares to
trade on some other market or listing segment, or because
the unlisted surviving company in a corporate restructuring
process has failed to have its shares listed to trade on the
Novo Mercado within the assigned deadline (such as provided
in item (ii) of the main provision of Article 63 above), then
any such delisting shall be contingent on a tender offer being
conducted under the same terms and conditions established
under Article 63 above.
Paragraph 1. The Shareholders’ Meeting shall in any event
name the shareholder or shareholders in attendance of the
meeting which shall be responsible for conducting the tender
offer, and the designated party or parties shall be required to
commit expressly to carrying out the tender offer.
Paragraph 1. The Shareholders’ Meeting shall in any event
name the shareholder or shareholders in attendance of the
meeting which shall be responsible for conducting the tender
offer, and the designated party or parties shall be required to
commit expressly to carrying out the tender offer.
Paragraph 2. Where the shareholders’ meeting approves a
corporate restructuring process but fails to appoint the
shareholder(s) responsible for conducting a tender offer if the
unlisted surviving company fails to arrange the listing on the
Novo Mercado segment, then the obligation to conduct a
tender offer shall lie with all the shareholders that voted for
the corporate restructuring process.
Paragraph 2. Where the shareholders’ meeting approves a
corporate restructuring process but fails to appoint the
shareholder(s) responsible for conducting a tender offer if the
unlisted surviving company fails to arrange the listing on the
Novo Mercado segment, then the obligation to conduct a
tender offer shall lie with all the shareholders that voted for
the corporate restructuring process.
Article 65. A delisting from the Novo Mercado segment
triggered by noncompliance with the Listing Rules, shall
require a tender offer to be conducted for all shares at a bid
price at least equivalent to the Economic Value per share, as
determined pursuant to a valuation report prepared
according to Article 63 and paragraphs of these Bylaws and
other applicable legal and regulatory rules.
Article 65. A delisting from the Novo Mercado segment
triggered by noncompliance with the Listing Rules, shall
require a tender offer to be conducted for all shares at a bid
price at least equivalent to the Economic Value per share, as
determined pursuant to a valuation report prepared
according to Article 63 and paragraphs of these Bylaws and
other applicable legal and regulatory rules.
Paragraph 1. In the event contemplated in the main
provision of this Article, the Controlling Shareholder (if any)
Paragraph 1. In the event contemplated in the main
provision of this Article, the Controlling Shareholder (if any)
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shall bear the responsibility for conducting the tender offer. shall bear the responsibility for conducting the tender offer.
Paragraph 2. Where the event of noncompliance with the
Novo Mercado Listing Rules is triggered by action taken at a
Shareholders’ Meeting, absent a Controlling Shareholder to
conduct the tender offer, the obligation shall lie with the
shareholders that voted for the motion leading to
noncompliance with the Listing Rules.
Paragraph 2. Where the event of noncompliance with the
Novo Mercado Listing Rules is triggered by action taken at a
Shareholders’ Meeting, absent a Controlling Shareholder to
conduct the tender offer, the obligation shall lie with the
shareholders that voted for the motion leading to
noncompliance with the Listing Rules.
Paragraph 3. Where the event of noncompliance with Novo
Mercado Listing Rules (set forth in the main provision) is
triggered by action taken by Management, i.e., an “act or fact
of Management,” then the Directors and Officers shall be
required promptly to call a Shareholders’ Meeting (pursuant
to Article 123 of Brazilian Corporate Law*) for the
shareholders to resolve on action required to be taken to
remedy the event of noncompliance with the Listing Rules
or, otherwise, decide for a delisting from the Novo Mercado..
Paragraph 3. Where the event of noncompliance with Novo
Mercado Listing Rules (set forth in the main provision) is
triggered by action taken by Management, i.e., an “act or fact
of Management,” then the Directors and Officers shall be
required promptly to call a Shareholders’ Meeting (pursuant
to Article 123 of Brazilian Corporate Law*) for the
shareholders to resolve on action required to be taken to
remedy the event of noncompliance with the Listing Rules
or, otherwise, decide for a delisting from the Novo Mercado..
Paragraph 4. Where a Shareholders’ Meeting called pursuant
to paragraph 3 above decides for delisting from the Novo
Mercado segment, it shall also be required to name one or
more attending shareholders to conduct the tender offer, and
the latter shall be required to commit expressly to carrying
out the tender offer.
Paragraph 4. Where a Shareholders’ Meeting called pursuant
to paragraph 3 above decides for delisting from the Novo
Mercado segment, it shall also be required to name one or
more attending shareholders to conduct the tender offer, and
the latter shall be required to commit expressly to carrying
out the tender offer.
Article 66. It shall be permitted for a single tender offer to be
registered with a view to accomplishing more than one of the
objectives set forth under this CHAPTER, the Novo Mercado
Listing Rules, Brazilian Corporate Law* and the CVM
regulations, provided it must be possible to harmonize the
different offer methods, and provided, further, the procedure
shall not be detrimental to the addressees of the offer and the
CVM shall have consented to such tender offer.
Article 66. It shall be permitted for a single tender offer to be
registered with a view to accomplishing more than one of the
objectives set forth under this CHAPTER, the Novo Mercado
Listing Rules, Brazilian Corporate Law* and the CVM
regulations, provided it must be possible to harmonize the
different offer methods, and provided, further, the procedure
shall not be detrimental to the addressees of the offer and the
CVM shall have consented to such tender offer.
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Article 67. Where these bylaws, the Novo Mercado Listing
Rules, Brazilian Corporate Law or the CVM regulations
require a tender offer to be carried out by the Company or by
one or some of the shareholders, the obligation may be
discharged by any willing shareholder or third party.
However, the Company or the shareholder(s) charged with
conducting the tender offer shall not be released from the
obligation until such time as the offer completes in
accordance with applicable rules.
Article 67. Where these bylaws, the Novo Mercado Listing
Rules, Brazilian Corporate Law or the CVM regulations
require a tender offer to be carried out by the Company or by
one or some of the shareholders, the obligation may be
discharged by any willing shareholder or third party.
However, the Company or the shareholder(s) charged with
conducting the tender offer shall not be released from the
obligation until such time as the offer completes in
accordance with applicable rules.
Section II - Protection of Widespread Ownership Section II - Protection of Widespread Ownership
Article 68. Any shareholder or Shareholder Group
(“Acquiring Shareholder”) intending to acquire: (a) direct or
indirect ownership interest in 15% or more of the shares then
issued and outstanding; or (b) other shareholder rights
(including rights as usufruct holder) giving the holder a 15%
voting interest in the shares then issued and outstanding,
shall be required to obtain prior consent from the CVM in the
manner established under the CVM rules, while giving due
regard to the Novo Mercado Listing Rules, other
BM&FBOVESPA rules and the provisions under this
Chapter.
Article 68. Any shareholder or Shareholder Group
(“Acquiring Shareholder”) intending to acquire: (a) direct or
indirect ownership interest in 15% or more of the shares then
issued and outstanding; or (b) other shareholder rights
(including rights as usufruct holder) giving the holder a 15%
voting interest in the shares then issued and outstanding,
shall be required to obtain prior consent from the CVM in the
manner established under the CVM rules, while giving due
regard to the Novo Mercado Listing Rules, other
BM&FBOVESPA rules and the provisions under this
Chapter.
Sole paragraph. Upon delivering the application to the
CVM, the Acquiring Shareholder shall on the same date
forward a copy to the Investor Relations Officer. Pursuant to
CVM Ruling No. 358/2002, the Investor Relations Officer
shall thereafter promptly release notice to the market
disclosing the application.
Sole paragraph. Upon delivering the application to the
CVM, the Acquiring Shareholder shall on the same date
forward a copy to the Investor Relations Officer. Pursuant to
CVM Ruling No. 358/2002, the Investor Relations Officer
shall thereafter promptly release notice to the market
disclosing the application.
Article 69 Where an Acquiring Shareholder (a) accumulates
direct or indirect ownership interest in no less than 30% of
Article 69. Where an Acquiring Shareholder (a) accumulates
direct or indirect ownership interest in no less than 30% of
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the Company shares then issued and outstanding; or (b)
acquires other shareholder rights (including as usufruct
holder) representing a voting interest in over 30% of the
shares then issued and outstanding, such Acquiring
Shareholder shall be required (within 30 days after obtaining
authorization from the CVM) to initiate or register a tender
offer for all other shares of the Company, whereas having
regard to the provisions of Brazilian Corporate Law*, the
CVM rules, the rules of exchanges where the shares are
admitted for trading, and the rules set forth in these Bylaws.
the Company shares then issued and outstanding; or (b)
purchases other shareholder rights (including as usufruct
holder) representing a voting interest in over 30% of the
shares then issued and outstanding, such Acquiring
Shareholder shall be required (within 30 days after obtaining
authorization from the CVM) to initiate or register a tender
offer for all other shares of the Company, whereas having
regard to the provisions of Brazilian Corporate Law*, the
CVM rules, the rules of exchanges where the shares are
admitted for trading, and the rules set forth in these Bylaws.
Sole paragraph. The Acquiring Shareholder must meet the
CVM requirements and requests within the deadlines
established under applicable regulations.
Sole paragraph. The Acquiring Shareholder must meet the
CVM requirements and requests within the deadlines
established under applicable regulations.
Article 70. The bid price per share in the tender offer (“Bid
Price”) triggered by accumulation of material ownership
interest shall at least equal the highest market price per share
paid by the Acquiring Shareholder in the six-month period
preceding the date when the material interest threshold (set
under Article 69) was hit, as adjusted to account for
corporate actions such as distributions of dividends or
interest on shareholders’ equity, stock splits, reverse splits
and bonus issues, but not for corporate actions related to
corporate restructuring processes.
Article 70. The bid price per share in the tender offer (“Bid
Price”) triggered by accumulation of material ownership
interest shall at least equal the highest market price per share
paid by the Acquiring Shareholder in the six-month period
preceding the date when the material interest threshold (set
under Article 69) was hit, as adjusted to account for
corporate actions such as distributions of dividends or
interest on shareholders’ equity, stock splits, reverse splits
and bonus issues, but not for corporate actions related to
corporate restructuring processes.
Paragraph 1. The tender offer shall meet the requirements set
forth below, and any other requirements contemplated under
CVM Ruling No. 361/02, as amended or substituted from
time to time.
Paragraph 1. The tender offer shall meet the requirements set
forth below, and any other requirements contemplated under
CVM Ruling No. 361/02, as amended or substituted from
time to time.
(a) it shall be open to all shareholders; (a) it shall be open to all shareholders;
(b) it shall be carried out in an auction held at the premises (b) it shall be carried out in an auction held at the premises
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of the stock exchange operated by BM&FBOVESPA; of the stock exchange operated by BM&FBOVESPA;
(c) it shall extend fair and equitable treatment to all
shareholders, provide adequate information regarding
the Company and the bidder, and every other element
required for shareholders to make an independent and
informed decision on whether to tender their shares;
(c) it shall extend fair and equitable treatment to all
shareholders, provide adequate information regarding
the Company and the bidder, and every other element
required for shareholders to make an independent and
informed decision on whether to tender their shares;
(d) it shall be irrevocable and irreversible upon publication
of the tender offer announcement, per CVM Ruling No.
361/02;
(d) it shall be irrevocable and irreversible upon publication
of the tender offer announcement, per CVM Ruling No.
361/02;
(e) it shall offer a bid price set in accordance with the main
provision of this Article for settlement in cash, in
Brazilian currency; and
(e) it shall offer a bid price set in accordance with the main
provision of this Article for settlement in cash, in
Brazilian currency; and
(f) it shall attach a report of the valuation of the Company,
which shall have been prepared according to the main
provision of this Article.
(f) it shall attach a report of the valuation of the Company,
which shall have been prepared according to the main
provision of this Article.
Paragraph 2. The tender offer requirement set forth in the
main provision of Article 69 shall not preclude other
shareholders, or even the Company, if it is the case, from
conducting their own concurrent tender offers, as permitted
by applicable regulations.
Paragraph 2. The tender offer requirement set forth in the
main provision of Article 69 shall not preclude other
shareholders, or even the Company, if it is the case, from
conducting their own concurrent tender offers, as permitted
by applicable regulations.
Paragraph 3. Meeting the requirements set forth under
Article 254-A of Brazilian Corporate Law* and Article 59 of
these Bylaws shall not exempt the Acquiring Shareholder
from fulfilling the requirements set forth in this Article.
Paragraph 3. Meeting the requirements set forth under
Article 254-A of Brazilian Corporate Law* and Article 59 of
these Bylaws shall not exempt the Acquiring Shareholder
from fulfilling the requirements set forth in this Article.
Paragraph 4. The tender offer requirement established in
Article 69 shall not apply in the event a person becomes the
holder of a material interest in 30% or more of the issued and
Paragraph 4. The tender offer requirement established in
Article 69 shall not apply in the event a person becomes the
holder of a material interest in 30% or more of the issued and
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outstanding shares as a result of any of the following: outstanding shares as a result of any of the following:
(a) Subscription for shares in a single primary offering of
shares issued pursuant to a decision taken at a
Shareholders’ Meeting called by the Board of Directors,
where the issue price is determined on the basis of the
Economic Value determined pursuant to a valuation
report prepared by a specialist firm according to the
requirements in the paragraphs of Article 63; or
(a) Subscription for shares in a single primary offering of
shares issued pursuant to a decision taken at a
Shareholders’ Meeting called by the Board of Directors,
where the issue price is determined on the basis of the
Economic Value determined pursuant to a valuation
report prepared by a specialist firm according to the
requirements in the paragraphs of Article 63; or
(b) A tender offer conducted for the acquisition of the totality
of the Company’s shares.
(b) A tender offer conducted for the acquisition of the totality
of the Company’s shares.
Paragraph 5. Following the published announcement of any
tender offer (or exchange offer) made in response to the
provisions of these Bylaws, including as to Bid Price, or in
accordance with applicable regulations, for settlement in
cash or in exchange for shares of another public company,
the Board of Directors shall within 10 days consider the
tender or exchange offer based on the following guidelines:
Paragraph 5. Following the published announcement of any
tender offer (or exchange offer) made in response to the
provisions of these Bylaws, including as to Bid Price, or in
accordance with applicable regulations, for settlement in
cash or in exchange for shares of another public company,
the Board of Directors shall within 10 days consider the
tender or exchange offer based on the following guidelines:
(a) the Board of Directors may retain a specialist firm that
meets the requirements set forth in paragraph 1 of Article
63, to assess the timing and convenience of the offer and,
as the case may be, the liquidity of the shares in the
exchange offer, and whether the offer suits the interests
of shareholders and the industry in which the Company
and its subsidiaries operate;
(a) the Board of Directors may retain a specialist firm that
meets the requirements set forth in paragraph 1 of Article
63, to assess the timing and convenience of the offer and,
as the case may be, the liquidity of the shares in the
exchange offer, and whether the offer suits the interests
of shareholders and the industry in which the Company
and its subsidiaries operate;
(b) the Board of Directors shall be responsible for releasing a
reasoned opinion concerning the offer, in accordance
with item (v) of Article 29 of these Bylaws.
(b) the Board of Directors shall be responsible for releasing a
reasoned opinion concerning the offer, in accordance
with item (v) of Article 29 of these Bylaws.
(c) in the event the Directors, acting on their fiduciary duties, (c) in the event the Directors, acting on their fiduciary duties,
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take the position that adhering to the offer is in the best
interest of a majority of the shareholders and the
domestic capital markets, which is the economic segment
in which the Company and subsidiaries operate, the
Board shall call an Extraordinary Shareholders’ Meeting
to be held within 20 days to consider eliminating the
voting cap established in Article 7, provided however
this shall be contingent on the bidder (and, for purposes
of these Bylaws, Acquiring Shareholder) completing the
offer and becoming the owner and holder of a minimum
of two-thirds (2/3) of the issued and outstanding shares,
not including treasury stock.
take the position that adhering to the offer is in the best
interest of a majority of the shareholders and the
domestic capital markets, which is the economic segment
in which the Company and subsidiaries operate, the
Board shall call an Extraordinary Shareholders’ Meeting
to be held within 20 days to consider eliminating the
voting cap established in Article 7, provided however
this shall be contingent on the bidder (and, for purposes
of these Bylaws, Acquiring Shareholder) completing the
offer and becoming the owner and holder of a minimum
of two-thirds (2/3) of the issued and outstanding shares,
not including treasury stock.
(d) as an exception, the voting cap established in Article 7
shall not prevail for the decision to be taken at the
Extraordinary Shareholders’ Meeting contemplated in
item (c) above, but solely it the meeting shall have been
called on the initiative of the Board of Directors;
(d) as an exception, the voting cap established in Article 7
shall not prevail for the decision to be taken at the
Extraordinary Shareholders’ Meeting contemplated in
item (c) above, but solely it the meeting shall have been
called on the initiative of the Board of Directors;
(e) the offer shall be made on an irrevocable and irreversible
basis. Where the offer is carried out on a voluntary basis,
it may be subject to minimum tender condition requiring
shareholders tendering at least an aggregate of 2/3 of the
outstanding shares, as provided in item (c) above in this
paragraph 5, and condition also that the shareholders
shall have approved the elimination of the voting cap
established in Article 7 of these Bylaws.
(e) the offer shall be made on an irrevocable and irreversible
basis. Where the offer is carried out on a voluntary basis,
it may be subject to minimum tender condition requiring
shareholders tendering at least an aggregate of 2/3 of the
outstanding shares, as provided in item (c) above in this
paragraph 5, and condition also that the shareholders
shall have approved the elimination of the voting cap
established in Article 7 of these Bylaws.
Paragraph 6. Without prejudice to the provision of
paragraph 3 above, the calculation of a 30% interest in the
issued and outstanding shares of the Company (as provided
in the main provision of Article 69) shall not include
involuntary increments resulting from cancellation of
treasury shares, or share redemption or a reduction in the
Paragraph 6. Without prejudice to the provision of
paragraph 3 above, the calculation of a 30% interest in the
issued and outstanding shares of the Company (as provided
in the main provision of Article 69) shall not include
involuntary increments resulting from cancellation of
treasury shares, or share redemption or a reduction in the
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capital stock amount resulting in cancellation of a
proportionate number of shares.
capital stock amount resulting in cancellation of a
proportionate number of shares.
Article 71. If the Acquiring Shareholder fails to comply with
the obligations foreseen in this Chapter, including
compliance with the deadlines for (i) initiating or applying to
register a tender offer; or (ii) responding to CVM demands or
requests, the Board of Directors shall call an Extraordinary
Shareholders’ Meeting to consider suspending the rights of
the Acquiring Shareholders, pursuant to Article 120 of
Brazilian Corporate Law*, at which meeting the Acquiring
Shareholder shall not be entitled to vote.
Article 71. If the Acquiring Shareholder fails to comply with
the obligations foreseen in this Chapter, including
compliance with the deadlines for (i) initiating or applying to
register a tender offer; or (ii) responding to CVM demands or
requests, the Board of Directors shall call an Extraordinary
Shareholders’ Meeting to consider suspending the rights of
the Acquiring Shareholders, pursuant to Article 120 of
Brazilian Corporate Law*, at which meeting the Acquiring
Shareholder shall not be entitled to vote.
Article 72. Where a tender offer required under the
provisions of these Bylaws is materially detrimental to the
rights of shareholders, the Novo Mercado Listing Rules shall
prevail over the provisions of these Bylaws.
Article 72. Where a tender offer required under the
provisions of these Bylaws is materially detrimental to the
rights of shareholders, the Novo Mercado Listing Rules shall
prevail over the provisions of these Bylaws.
CHAPTER IX CHAPTER IX
DEFINITIONS DEFINITIONS
Article 73. For purposes of these Bylaws, the capitalized
terms below shall have the following meanings:
Article 73. For purposes of these Bylaws, the capitalized
terms below shall have the following meanings:
(a) “Acquiring Shareholder” means any person (including,
for example, any natural or legal person, mutual or
investment fund, open or closed- end condominium,
securities portfolio, universality of rights or other form
of organization, resident, domiciled or based in Brazil or
elsewhere), including a Shareholder Group, or group of
persons bound under a voting agreement with the
(a) “Acquiring Shareholder” means any person (including,
for example, any natural or legal person, mutual or
investment fund, open or closed- end condominium,
securities portfolio, universality of rights or other form
of organization, resident, domiciled or based in Brazil or
elsewhere), including a Shareholder Group, or group of
persons bound under a voting agreement with the
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Acquiring Shareholder, and/or sharing similar interests
with the Acquiring Shareholder, where any such person
subscribes for, or acquires shares issued by the
Company. Examples of persons sharing similar interests
with the Acquiring Shareholder include any person (i)
controlled or managed by an Acquiring Shareholder; (ii)
controlling and managing the Acquiring Shareholder in
any way; (iii) controlled or managed by any person that
directly or indirectly controls or manages the Acquiring
Shareholder; (iv) in which the controlling shareholder of
the Acquiring Shareholder directly or indirectly holds
ownership interest in at least 30% of the outstanding
shares; (v) in which the Acquiring Shareholder has a
direct or indirect interest in at least 30% of the
outstanding shares; or (vi) which directly or indirectly
holds an interest in at least 30% of the outstanding
shares of the Acquiring Shareholder;
Acquiring Shareholder, and/or sharing similar interests
with the Acquiring Shareholder, where any such person
subscribes for, or acquires shares issued by the
Company. Examples of persons sharing similar interests
with the Acquiring Shareholder include any person (i)
controlled or managed by an Acquiring Shareholder; (ii)
controlling and managing the Acquiring Shareholder in
any way; (iii) controlled or managed by any person that
directly or indirectly controls or manages the Acquiring
Shareholder; (iv) in which the controlling shareholder of
the Acquiring Shareholder directly or indirectly holds
ownership interest in at least 30% of the outstanding
shares; (v) in which the Acquiring Shareholder has a
direct or indirect interest in at least 30% of the
outstanding shares; or (vi) which directly or indirectly
holds an interest in at least 30% of the outstanding
shares of the Acquiring Shareholder;
(b) “Shareholder Group” means a group of persons: (i)
bound by oral or written agreement or contract of any
nature, including Shareholder Agreements, directly or
through subsidiaries, controlling companies or
companies under common control; or (ii) between which
there is a control relationship; or (iii) under common
control; or (iv) representing common interests. Examples
of persons representing a common interest include: (v)
the direct or indirect owner of a shareholding
representing 15% or more of the capital stock of another
entity; and (vi) two persons with a common third-party
investor directly or indirectly holding shares equivalent
to 15% or more of the capital stock of each of these two
persons. Any joint ventures, funds for investment clubs,
foundations, associations, trusts, tenancies in common,
cooperatives, securities portfolios, universality is of
(b) “Shareholder Group” means a group of persons: (i)
bound by oral or written agreement or contract of any
nature, including Shareholder Agreements, directly or
through subsidiaries, controlling companies or
companies under common control; or (ii) between which
there is a control relationship; or (iii) under common
control; or (iv) representing common interests. Examples
of persons representing a common interest include: (v)
the direct or indirect owner of a shareholding
representing 15% or more of the capital stock of another
entity; and (vi) two persons with a common third-party
investor directly or indirectly holding shares equivalent
to 15% or more of the capital stock of each of these two
persons. Any joint ventures, funds for investment clubs,
foundations, associations, trusts, tenancies in common,
cooperatives, securities portfolios, universality is of
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rights or any other manner of organization or venture,
established in Brazil or abroad, shall be considered part
of a single Shareholder Group, whenever two or more of
these entities are: (vii) managed or administered by the
same legal entity or parties related to a single legal
entities; or (viii) when the majority of their management
is common to both entities, however for investment
funds with the same manager, only those for which the
manager is responsible for any decision on votes cast at
Shareholders’ Meetings, at its discretion, shall be
considered members of the Shareholder Group, subject
to the respective regulations.
rights or any other manner of organization or venture,
established in Brazil or abroad, shall be considered part
of a single Shareholder Group, whenever two or more of
these entities are: (vii) managed or administered by the
same legal entity or parties related to a single legal
entities; or (viii) when the majority of their management
is common to both entities, however for investment
funds with the same manager, only those for which the
manager is responsible for any decision on votes cast at
Shareholders’ Meetings, at its discretion, shall be
considered members of the Shareholder Group, subject
to the respective regulations.
(c) “Independent Director” means a Director that meets the
independence standards set forth in Paragraphs 6 and 7
of Article 22 of these Bylaws.
(c) “Independent Director” means a Director that meets the
independence standards set forth in Paragraphs 6 and 7
of Article 22 of these Bylaws.
(d) “Institutional Investor” means any investor that (i)
under CVM rules qualify as ‘qualified buyer’; and (ii)
those that are required by law or regulation or the
bylaws (whether or not exclusively) to invest proprietary
resources in securities issued by public companies.
(d) “Institutional Investor” means any investor that (i)
under CVM rules qualify as ‘qualified buyer’; and (ii)
those that are required by law or regulation or the
bylaws (whether or not exclusively) to invest proprietary
resources in securities issued by public companies.
Sole paragraph. Capitalized terms used herein which are not
defined in these Bylaws have the meaning ascribed to them
under the Novo Mercado Listing Rules.
Sole paragraph. Capitalized terms used herein which are not
defined in these Bylaws have the meaning ascribed to them
under the Novo Mercado Listing Rules.
CHAPTER X CHAPTER X
LIQUIDATION LIQUIDATION
Article 74. The Company shall be dissolved and enter Article 74. The Company shall be dissolved and enter
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liquidation in the events prescribed by law. It shall be
incumbent on shareholders convening in a Shareholders’
Meeting to establish the liquidation method and elect the
liquidator or liquidators and the Fiscal Council, if so
requested by shareholders individually or jointly
representing proportionate interest in the shares as
prescribed by law or the CVM rules, including as to
applicable formalities, and to determine their responsibilities
and set their compensation.
liquidation in the events prescribed by law. It shall be
incumbent on shareholders convening in a Shareholders’
Meeting to establish the liquidation method and elect the
liquidator or liquidators and the Fiscal Council, if so
requested by shareholders individually or jointly
representing proportionate interest in the shares as
prescribed by law or the CVM rules, including as to
applicable formalities, and to determine their responsibilities
and set their compensation.
CHAPTER XI CHAPTER XI
SELF-REGULATION SELF-REGULATION
Article 75. Without prejudice to the responsibilities of the
Chief Executive Officer, as established under applicable
regulations, the activities entailing surveillance and oversight
of (i) transactions carried out in markets managed and
operated by BM&FBOVESPA and its subsidiaries, (ii) the
activities of market participants holding permits for access to
these markets; and (iii) the market organization and
oversight activities performed by the Company and its
subsidiaries shall be incumbent on a subsidiary of the
Company organized for this special purpose.
Article 75. Without prejudice to the responsibilities of the
Chief Executive Officer, as established under applicable
regulations, the activities entailing surveillance and oversight
of (i) transactions carried out in markets managed and
operated by BM&FBOVESPA and its subsidiaries, (ii) the
activities of market participants holding permits for access to
these markets; and (iii) the market organization and
oversight activities performed by the Company and its
subsidiaries shall be incumbent on a subsidiary of the
Company organized for this special purpose.
CHAPTER XII CHAPTER XII
ARBITRATION ARBITRATION
Article 76. The Company, the shareholders, the directors and
officers and the fiscal council members (when the Fiscal
Article 76. The Company, the shareholders, the directors and
officers and the fiscal council members (when the Fiscal
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Council is active) are required to commit to settle by
arbitration any and all disputes involving any of them,
related to, or arising from the application, validity,
effectiveness, interpretation, violation and effects of violation
of the provisions of these Bylaws, the Brazilian Corporate
Law*, the rules and regulations of the Brazilian National
Monetary Council, the Central Bank of Brazil and the
Brazilian Securities Commission, the Novo Mercado Listing
and Sanctions Regulations, the Novo Mercado Listing
Agreement, and the Arbitration Regulation adopted by the
Market Arbitration Chamber, as well as other rules and
regulations applicable to the Brazilian capital markets. Any
arbitration proceedings will be conducted by the Market
Arbitration Chamber (established by BM&FBOVESPA)
under its adopted Arbitration Regulation.
Council is active) are required to commit to settle by
arbitration any and all disputes involving any of them,
related to, or arising from the application, validity,
effectiveness, interpretation, violation and effects of violation
of the provisions of these Bylaws, the Brazilian Corporate
Law*, the rules and regulations of the Brazilian National
Monetary Council, the Central Bank of Brazil and the
Brazilian Securities Commission, the Novo Mercado Listing
and Sanctions Regulations, the Novo Mercado Listing
Agreement, and the Arbitration Regulation adopted by the
Market Arbitration Chamber, as well as other rules and
regulations applicable to the Brazilian capital markets. Any
arbitration proceedings will be conducted by the Market
Arbitration Chamber (established by BM&FBOVESPA)
under its adopted Arbitration Regulation.
CHAPTER XIII CHAPTER XIII
GENERAL PROVISIONS GENERAL PROVISIONS
Article 77. The Company shall observe the terms and
conditions of the Shareholders’ Agreements filed at the
Company’s headquarters which do not conflict with the
provisions of these Bylaws. Management shall not register
share transfers or transfers of other securities that fail to
comply with the terms of Shareholder Agreements and the
President of the Shareholders’ Meetings shall not include
votes cast that breach terms of such agreements, under item
(k) Article 29.
Article 77. The Company shall observe the terms and
conditions of the Shareholders’ Agreements filed at the
Company’s headquarters which do not conflict with the
provisions of these Bylaws. Management shall not register
share transfers or transfers of other securities that fail to
comply with the terms of Shareholder Agreements and the
President of the Shareholders’ Meetings shall not include
votes cast that breach terms of such agreements, under item
(k) Article 29.
Article 78. The Company shall issue all notices, information,
financial statements and periodical information published or
Article 78. The Company shall issue all notices, information,
financial statements and periodical information published or
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filed with the CVM by e-mail to all shareholders registering
for this information in writing, for a period not exceeding
two years and indicating their e-mail address; this
communication shall not the supersede legally-required
publications and shall be subject to express shareholder
waiver of any Company liability for transmission errors or
omissions.
filed with the CVM by e-mail to all shareholders registering
for this information in writing, for a period not exceeding
two years and indicating their e-mail address; this
communication shall not the supersede legally-required
publications and shall be subject to express shareholder
waiver of any Company liability for transmission errors or
omissions.
Article 79. Where these Bylaws are silent on an issue, the
matter shall be resolved at a Shareholders’ Meeting,
provided due regard shall be given to the Novo Mercado
Listing Rules and the provisions of Brazilian Corporate Law.
Article 79. Where these Bylaws are silent on an issue, the
matter shall be resolved at a Shareholders’ Meeting,
provided due regard shall be given to the Novo Mercado
Listing Rules and the provisions of Brazilian Corporate Law.