Protecting Investors
 

Protecting investors

Brazilian law gives the same protection and guarantees to foreign capital investments that it gives to investments made by Brazilian nationals. Special incentives are offered for investments in mining, fishing, tourism, shipbuilding, and reforestation and for projects undertaken in the northeast and Amazon regions.

In 1995, Brazil amended its constitution to eliminate the distinction between foreign and national capital and petroleum, telecommunications, mining, power generation, and internal transportation sectors were opened up to foreign investment. Foreign investors have been allowed to trade on the Brazilian stock market since 1991.

Strategic International Solutions for Business – SIS4Biz provides independent, objective information to help you make informed investment decisions. Investors who are uninformed face the greatest risk of falling victim to an investment scam or con artist.

Through our existing network of over 20 years, we are able to arrange introductions and mediation to business partners and government authorities at host state, for support and negotiation of better terms and incentives treatment prior to foreign investment. We also provide coaching for proper money transfers of investment earnings and other payments with registration at Brazil Central Bank.

Our efforts are focused on improving the legal position of investors and creating a climate favorable to capital investment by providing standardized information and advice with assistance and legal support in establishing contracts combined with resolution for any eventual disputes.

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Indicator Brazil Latin America & Caribbean OECD Average
Extent of disclosure index (0-10) 6 4.0 5.9
Extent of director liability index (0-10) 7 5.3 5.0
Ease of shareholder suits index (0-10) 3 6.0 6.6
Strength of investor protection index (0-10) 5.3 5.1 5.8

Summary from Doing Business 2010 data for Brazil.

 
 
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