The Department of Business Registration and Integration (DREI), issued Normative Instruction number. 40, on May 2nd, 2017, which repeals a recent change implemented by Normative Instruction number 34 that had implemented the need for a non-resident shareholders or quota holders to constitute a proxy in Brazil for an undefined period.

After much criticism and questioning by renowned jurists DREI reviewed NI number 34 and decided to change the wording of article 2nd, caput and its §5th and removed the obligation of indeterminate term of the Powers of attorney granted by non-resident shareholders or quota holders.

Notwithstanding, powers of attorney with a validity period will also be considered valid for registration purposes at the Brazilian Boards of Commerce with the remaining formalities regarding the presentation of a sworn translation, notarization, authentication of the Brazilian Consulate or Apostille, regarding the that signed the Hague Convention.

Normative Instruction number 40 will come into effect from the first week of July 2017 and RSM Brasil will be available to clarify any doubts about such change.