The present work examines the limits and possibilities for deferring payment of mandatory dividends based on the rule contained in Art. 202, § 4, of the Brazilian Law of Corporations. For this purpose, it starts by briefly discussing the concept of net income for the year and the possibility of constituting reserves. Then it analyzes the decisions of the Brazilian Securities and Exchange Commission (CVM) in two important cases involving application of this rule (Proceedings RJ-2007-10879 and RJ-2007-13216) before addressing the interpretation of the rule.
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Maria Isabel Bocater
José Luiz Braga
Carlos Martins Neto
