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President vetoes Bill of Law that regulates liability of shareholders and managers for company’s debt
President vetoes Bill of Law that regulates liability of shareholders and managers for company’s debt
Brazilian President has vetoed the Bill of Law No. 3401/08, approved by the House of Representatives on November 22, 2020, aiming to extend liability of shareholders and managers for companies debts, in which we have recently dealt (read here).
The main reasons for the presidential veto were, among others, legal uncertainty since the Bill of Law conflicted with provisions established in other Laws about the same matter, such as the Brazilian Tax Code. Further reasons were based on unconstitutionality and contrariety to the public interest.
The veto shall be appreciated within 30 days in a joint National Congress session, which requires absolute majority to potentially reject the veto.
