By Carla Pusiol
PLBrasil Group | 04.09.2021
Companies that end their respective fiscal years on December 31 have until the end of April of the following year to meet the formalities established by law for the approval of accounts.
Companies must approve accounts in the first 4 (four) months following the end of the fiscal year, in accordance with Article 1,078 of Law No. 10,406/2002 (“Civil Code”) and 132 of Law No. 6,404/1976 (“S.A. Law”).
The approval of accounts must be made annually through a meeting or meeting of members – in the case of a limited company with less than ten (10) members, at which time the present:
1. Take and approve the accounts of the administrators and deliberate on the other financial statements, when applicable;
2. Appoint administrators and board members, when applicable; and
3. They deal with other issues that are on the agenda of the day.
Impacts of the Covid-19 pandemic
In 2020, the deadlines and formalities of this legal obligation were relaxed to mitigate the effects of the COVID-19 pandemic on corporations, limited and cooperative, according to Provisional Measure No. 931 of March 30, 2020, converted into Law No. 14,020 of 2020.
The deadline for holding meetings was extended from 04 (four) to up to 07 (seven) months, counted from the end of the fiscal year.
These new legal provisions also innovated by formalizing: (I) the possibility of holding remote meetings, in a digital way, provided that all the rights of the members (II) are protected, the extension of the mandate of the directors and members of the Board until the holding of a new meeting of members.
But be warned, this extension was exceptionally applied to the year 2020 and, until the date of publication of this article, no measure has been officially announced for the extension of deadlines in 2021. In this way, the deadlines return to the original legislation, already with the permission to hold remote meetings.