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NEW RULES FOR POWER OF ATTORNEY - 2017
Incorporating a Brazilian company, step by step
How to incorporate a Brazilian company through foreign direct investment
List of documents for setting up a company in Brazil
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If so, how do I know which one should be used in practice?
More importantly; how many and which absolute powers should a legal representative be given (in accordance with Brazilian law)?
a) there being PoA's which only relate to powers to incorporate a company; and
b) there being PoA's which relate to powers to incorporate a company AND to grant powers once the company has been incorporated?
Kind Regards,
NEW RULES FOR POWER OF ATTORNEY - 2017
Incorporating a Brazilian company, step by step
How to incorporate a Brazilian company through foreign direct investment
List of documents for setting up a company in Brazil
--------------
Dear Mr. Adler
I have read your blog
"List of documents for setting up a company in Brazil" dated 19
November 2012 on the website http://brazilianlawblog.blogspot.nl/2012/11/list-of-documents-for-setting-up.html#uds-search-results.
For an assignment at my university in the Netherlands (setting up a LDTA and I have chosen Brazil as country of corporation) I would much appreciate if you could forward me the "power of attorney to a Brazilian representative" referred to in your blog for information, and if possible, please advise which "powers" are mandatory according to Brasilian law.
To my understanding two power of attorney's (PoA's) need to be granted to a legal representative resident in Brazil:
For an assignment at my university in the Netherlands (setting up a LDTA and I have chosen Brazil as country of corporation) I would much appreciate if you could forward me the "power of attorney to a Brazilian representative" referred to in your blog for information, and if possible, please advise which "powers" are mandatory according to Brasilian law.
To my understanding two power of attorney's (PoA's) need to be granted to a legal representative resident in Brazil:
·
one for corporate purposes; and
·
one for tax identification number purposes
(CNPJ/MF).
Is this correct?
If so, could you please
provide both PoA's?
Looking forward to hearing
from you.
Kind Regards,
Lieke
--------------------------
Hello Lieke,
Thank you for your
contact.
I don't usually provide
models.
Regardin the PoAs, there are two contractual
relationships that need attention. The first is the more general one, where the
grantor gives the agent powers to incorporate a company.
Since incorporation of a
company involves several agencies in Brazil, this PoA will usually be explicit
about powers to represent the grantor before many agencies, including the
Brazilian Revenue Service (Receita Federal), where the CNPJ is granted.
The second Power of
Attorney (which is usually granted within the same document) may or may not be
given to the same person that receives the first one.
It is mandatory, for the
law states that any foreign investor in Brazil must have, permanently, a local
representative with powers to receive court summoning. This is mainly to avoid
delays in summoning should the foreign investor be actioned in any lawsuit here
in Brazil.
Please draft a template and
I will review it for you.
Good luck in your
studies.
Adler
_____________
Hello Adler,
Thank you for your responding to my email!
Your help is much appreciated, thank you for clarifying.
I hope you don't mind me asking you some more
questions.
While searching the internet I came across another
PoA - please refer to the following: http://www.sec.gov/Archives/edgar/data/1439746/000114420411056375/v236335_ex10-10.htm.
This other PoA seems to be more broadly written, e.g. to attend and vote for, in the name of Grantor, in all and any meetings + appoint officers + etc.
This other PoA seems to be more broadly written, e.g. to attend and vote for, in the name of Grantor, in all and any meetings + appoint officers + etc.
The differences between it and your mail are a bit
confusing.
Should I indeed assume many sorts of PoA templates
are used in Brazil?
If so, how do I know which one should be used in practice?
More importantly; how many and which absolute powers should a legal representative be given (in accordance with Brazilian law)?
OR - do the differences between the two templates
relate to:
a) there being PoA's which only relate to powers to incorporate a company; and
b) there being PoA's which relate to powers to incorporate a company AND to grant powers once the company has been incorporated?
If this is stretching your kindness too far, I will
completely understand!
Kind Regards,
Lieke
______________
Dear Lieke,
Basically, there is no
standard template for a Power of Attorney. You will find hundreds of models,
covering from very specific acts to virtually all possible powers.
(Actually, it is funny you ask. Only a foreigner would make such a question. In Brazil we are used to not having anything standardized. Not that this is good. In fact, it is very bad for business. But it is a reality.)
I'm forwarding this email
to Mr. Nuno, my colleague, who will help you with your other doubts.
I'd like to ask your
permission to post those messages in my blog, since the discussion is getting
interesting.
Regards,
Adler
________________
Dear Adler,
Thank you for your
response and for forwarding my message to Mr. Nuno.
I would certainly not
mind if you post the messages in your blog.
Best Regards,