Brazil Considers Modifying Its Corporations

The national legislature in Brazil, which has South America's most powerful economy, is considering a proposal to change the structure of "Sociedades Annimas," or SAs, Brazil's business equivalent of corporations. Modifying the relationship between the those who hold a controlling interest in a corporation and minority shareholders promises to strengthen the capital market, claims Alcides Tpias, Brazil's development minister. The proposed measure, which requires more disclosure from majority shareholders, also would strengthen Brazilian companies by making it easier, and safer, to invest in non-public companies, it's believed.