The annual Ordinary General Meeting (AGM) to take stock of directors’ accounts is a legal requirement laid down in Law 6.404/1976 (Brazilian Corporate Law), specifically in articles 132 et seq. This provision establishes that the AGM must take place within the first 4 (four) months following the end of the fiscal year, usually by the end of April, when the fiscal year coincides with the calendar year. During this period, it is essential that companies organize themselves to comply with this legal deadline, avoiding possible irregularities.
The AGM is essential for the shareholders to assess the performance of the directors, decide on the allocation of the results and elect, where applicable, the members of the management and supervisory bodies. Failure to hold the meeting within the established timeframe can lead to legal consequences, including the accountability of directors and the possibility of annulment of acts in breach of the law.
With regard to the publication of financial statements, the Brazilian Corporate Law requires them to be made public in order to ensure transparency for shareholders and interested third parties. Generally, these are published in large-circulation newspapers and in the Official Gazette, but for closed companies with annual gross revenue of up to R$78 million, the legislation allows publications to be made electronically, through the Balance Sheet Center of the Public Digital Bookkeeping System (SPED), without the obligation to publish in printed newspapers.
Proper compliance with all the procedures required to hold the AGM demonstrates the company’s commitment to complying with legal standards and good corporate governance. CPDMA is available to assist your company in conducting ordinary meetings, preparing and publishing financial statements and complying with other corporate obligations, contributing to legal certainty and the integrity of corporate management.