Subsidiaries to be sold without legislative authorization and competitive bidding

STF admite venda de subsidiárias sem autorização legislativa e licitação
STF admite venda de subsidiárias sem autorização legislativa e licitação
11/06/2019
Equipamento de proteção para o trabalho gera crédito de PIS e COFINS
13/06/2019

Subsidiaries to be sold without legislative authorization and competitive bidding

STF admite venda de subsidiárias sem autorização legislativa e licitação

STF admite venda de subsidiárias sem autorização legislativa e licitação

Subsidiaries to be sold without legislative authorization and competitive bidding
STF allows subsidiaries of state-owned companies and government-controlled companies to be sold without specific legislative authorization and competitive bidding.

On June 6, by a majority vote, the en banc Federal Supreme Court (STF) found for the constitutionality of the provisions of Law No. 13303, of 2016, which sets forth the legal status of state-owned companies, government-controlled companies, and their subsidiaries with regard to the sale of subsidiaries.

The following conclusions prevailed:

1. Disposition of the Federal Government’s control over state-owned companies and government-controlled companies requires previous legislative authorization and formal bidding procedure.

2. Disposition of control of state-owned companies and government-controlled companies over their subsidiaries does not require specific legislative authorization and can be conducted irrespective of a formal bidding procedure. However, a competitive procedure compliant with the government’s principles is required.

STF’s decision provides legal certainty to investment rationalization processes of Brazilian state-owned companies, and State reduction in compliance with the Federal Accounting Court, positively impacting on, for example, the «divestiture» plans announced by Petrobras e Eletrobras. Consequently, additional revenue is generated to the Federal Government, enabling it to reach one of its strategic objectives quicker.

LEGALE Overseas
LEGALE Overseas
The international edition guided with the same rigor of the traditional LEGALE, except intended for international clients and Brazilians living outside Brazil. A news channel especially organized to translate the Brazilian legal environment for the benefit of the most sophisticated clients.

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