Large Business companies
If the approval of the accounts is from a Large Business company (a company that has a total asset in over BRL 240 Million in the previous fiscal year or an annual gross revenue over BRL 300 Million), it will be necessary to verify with the local Board of Trade about the existence of a specific normative establishing all the mandatory rules for registration.
Some Boards of Trade, such as those in the State of Minas Gerais, Rio de Janeiro and São Paulo, request to send the sheets of the newspapers, containing the publication of the balance sheet and financial statements, related to the purpose of the deliberation.
The effects of account approval:
The performance of the General Meeting to approve the accounts, especially to the foreign shareholder, enables a more detailed analysis of the company’s financial statements and evaluation of how the company’s management has been conducted.
Under the Compliance perspective, the fulfillment of the approval of accounts demonstrates transparency of the company also, serves to detect and remedy possible irregularities.
The approval of the unreserved accounts by the shareholders, at first would exempt the administrators from possible litigation involving future liability and, in the event of civil liability lawsuit against the administrators, it would be necessary judicial annulment of the meeting or the meeting that approved the resolution.