On June 4, 2024, the Securities and Exchange Commission – CVM published Resolution No. 204, changing the rules for participation and voting in digital, in-person or hybrid meetings of corporations, encouraging shareholder participation in corporate meetings.

Despite expanding the use of remote voting ballots, making them mandatory at shareholders' meetings, whether ordinary or extraordinary, the rule now expressly provides for the exemption from the mandatory use of the ballot for companies that have not received votes via ballot since their last ordinary general meeting. These changes ensure greater shareholder participation in the strategic decisions of publicly-held companies.

The rule also introduces new procedures and rules for holding meetings, such as, for example, extending the deadline for shareholders to send voting instructions to four days before the meeting is held.

As defined by CVM Resolution 204, the remote voting ballot must be (i) submitted within 21 days, for extraordinary general meetings; and (ii) resubmitted within 20 days before the date set for the meeting, for the inclusion of candidates for the board of directors and fiscal council.

With the entry into force of CVM Resolution 204 on January 2, 2025, the following periodic information must be sent by the issuer to the CVM: the summary maps (i) of the central depositary; (ii) of the registrar; and (iii) of the votes sent directly to the company, both with the respective voting instructions of the shareholders.

The improvements to the rules regarding remote participation and voting in shareholders' meetings brought about by the regulation seek to make the process more effective and less burdensome for the participants involved.

CVM Resolution 204 comes into force on 2/1/2025, in view of the need to adapt issuers' systems and routines.