By the time you read this article, President Fernando Henrique
Cardoso will have signed Brazil's new corporate law, after
three years of debate in Congress.
Committed to Reform
The president of the CVM, Brazil's capital market regulatory agency, explains why new legislation will reform the country's equity markets, improve corporate governance and help minority investors.
The government is committed to developing the country's
capital markets, and knows that among other things, increased
transparency, more rigorous enforcement of the law and better
protection for minority investors are necessary to achieve this
goal. I believe the new law does address these points. The
government knows that this is just the beginning of a new phase
and will need to do more.
In order to better understand its strategy to reform the
Brazilian capital markets, we need to go back in time.
The previous corporate law dates from 1976. At the time, it
marked a major improvement over the previous legislation.
However, policymakers were concerned with attracting retail
savings to fund Brazilian corporate groups and they achieved
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