The importance of the legal representative: an analysis of the social network case X
After a 40-day suspension, X (formerly Twitter) has resumed operations in Brazil following the payment of R$28.6 million in fines. The suspension was primarily due to the lack of a legal representative/attorney-in-fact appointed in Brazil, as determined by Minister Alexandre de Morais of the Superior Federal Court (STF). This case highlights the critical role of a legal representative for foreign companies operating in the country
Corporate governance is a fundamental pillar for business success
Corporate governance is a set of practices and policies adopted by companies to ensure efficient, transparent and ethical management. Those that adopt good governance practices generally perform better, are more resilient in times of crisis and are able to innovate more easily.
Legal obligations that every board member must fulfill
Within the scope of a board member’s role, it is necessary to observe and comply with a series of legal obligations that underpin the integrity of their duties. These responsibilities include full compliance with the laws and regulations pertaining to the sector in which the organization operates. In addition, board members are obliged to act diligently, ensuring that their decisions are aligned with the interests of the company.
Foreign companies must appoint a legal representative in Brazil
Foreign companies planning to establish a presence in Brazil need to understand local legislation. Among the various obligations is the need to establish a legal representative in the country. This representative will be in charge of overseeing and managing all the company's operations in Brazil, ensuring compliance with local laws and regulations.
Foreign Direct Investment in Brazil: how does it work?
In the first half of 2023, Brazil stood out as the country that attracted the most Foreign Direct Investment (IED, in Portuguese), second only to the United States. This result is particularly significant given the current global uncertainty. It is worth noting that, in 2022, Brazil had already occupied fifth place in this ranking, with a total of US$ 86 billion in IED, surpassed only by the USA. This rise in attracting foreign investment highlights the country's attractiveness on the international scenario.
Guidelines for foreign investors when opening a business in Brazil
The historically complex process of opening a business in Brazil has undergone significant changes. Simplification measures have been adopted with the aim of making the procedure more accessible, providing a friendlier environment for foreign investors.
Board of Directors and Legal Representation: key points
The legal representation of a foreign member of the Board of Directors in a Brazilian Limited Liability Corporation is an essential process. The foreign board member, who is an individual of foreign nationality, becomes part of the company as a board member. However, due to their foreign nationality, they require a legal representative to sign board meeting minutes on their behalf.
Reinsurance: do you know what it is?
Insurance is something we already know; it protects us against certain risks. But what about reinsurance, is it a new term for you? Let’s clarify it below.
A reinsurer is a company that assumes part of the risks covered by an insurer. This means that it acts as a financial support for insurers, helping them to deal with increasingly complex risks and react quickly to problems.
Internationalization of companies: know the differences between branch office, subsidiary, and Foreign-Owned Company
The internationalization process of a company may involve the creation of subsidiaries or branches as a strategy to establish a presence in foreign markets. The choice will depend on the company's business strategy, considering factors such as available resources, the risks involved, and the characteristics of the target market.
Among emerging countries, Brazil is the one that receives the most foreign investment
According to the Confidence Index for Foreign Direct Investment, from international consultancy Kearney, Brazil ranks seventh among the emerging countries most sought after by foreign investors. The study analyzed the performance of 25 nations, and Brazil was ranked below China, India, United Arab Emirates, Qatar, Thailand, and Saudi Arabia.
