Alerts
Federal Supreme Court revoke the decision that suspends processes involving the acquisition of rural properties by Brazilian companies with foreign majority participation
On May 5, 2023, the Federal Supreme Court (STF) proclaimed the result of the judgment, after a tie (5 to 5) in a virtual plenary, in the course of the Argumentation of Non-compliance with a Fundamental Precept (ADPF) No. 342 and the Original Civil Action (ACO) No. 2,463. In light of the tie, that occurred due to the lack of one minister in the composition of the Court, after the retirement of Ricardo Lewandowski, the preliminary decision issued by Minister André Mendonça, that suspended the legal proceedings related to the acquisition of rural properties by Brazilian companies that have majority participation of foreigners was not referendum, was overturned.
Minister Alexandre de Moraes sustained that the suspension of all processes, with the aim of guaranteeing legal certainty, is a disproportionate measure, that could cause the increase of the legal insecurity in higher proportions than indicated by André Mendonça.
The minister also mentioned that maintaining the decision would impose limitations for national companies with foreign capital and, consequently, would cause a negative impact on several business relationships. Ministers Luís Roberto Barroso, Luiz Fux and Gilmar Mendes and Minister Rosa Weber (president) voted in the same direction as Minister Alexandre de Moraes.
Dias Carneiro Advogados is entirely available to provide any clarifications and to assist with this matter.
Click here and learn more about the judgment.