Post by account_disabled on Mar 10, 2024 23:05:35 GMT -5
Minister Castro Meira, of the Superior Court of Justice, granted an injunction that suspends the rule of the Securities and Exchange Commission (CVM) that obliges public companies to disclose the value of their administrators' salaries on the internet. The injunction was obtained by the Brazilian Institute of Finance Executives (Ibef) and applies to executives associated with the entity. Most public company executives are members of Ibef.
In the request to the STJ, Ibef's defense maintains that the requirement violates the Corporation Law and several constitutional guarantees, such as privacy, intimacy and data confidentiality. Minister Castro Meira's injunction suspends the effects of the decision of the Federal Regional Court of the nd Region, which considered the requirement to be regular.
In the TRF- decision, suspended by the injunction granted by Castro Meira this Friday (/), the case's rapporteur, judge Marcelo Pereira da Silva, stated that “the CVM's determination is fully supported by the principle Austria Phone Numbers List of full disclosure , which deals with transparency regarding the broad flow of information, making it impossible to effectively envisage any violation of the principles of privacy and intimacy”. The understanding, however, was suspended by the STJ.
The requirement is set out in Annex of CVM Normative Instruction / Item in the standard requires the disclosure, for three years, of the maximum, average and minimum compensation of executives. In practice, the salaries of all the presidents of publicly traded companies ended up being published online, as they are the companies' highest salaries.
“The violation of the privacy of these professionals is obvious, as the CVM regulations impose — in a clear innovation to the regime created by the SA Law — that data relating to their salaries remain published on the internet for three years”, maintained the Ibef defense. .
According to the lawyers, “companies are already obliged, by the Brazilian Corporation Law, to inform the global amount paid to their administrators. In other words, the market is already fully aware of how much each company spends on its executives. What is discussed in the original action is the legality of individualizing and identifying this information”.
In the request to the STJ, Ibef's defense maintains that the requirement violates the Corporation Law and several constitutional guarantees, such as privacy, intimacy and data confidentiality. Minister Castro Meira's injunction suspends the effects of the decision of the Federal Regional Court of the nd Region, which considered the requirement to be regular.
In the TRF- decision, suspended by the injunction granted by Castro Meira this Friday (/), the case's rapporteur, judge Marcelo Pereira da Silva, stated that “the CVM's determination is fully supported by the principle Austria Phone Numbers List of full disclosure , which deals with transparency regarding the broad flow of information, making it impossible to effectively envisage any violation of the principles of privacy and intimacy”. The understanding, however, was suspended by the STJ.
The requirement is set out in Annex of CVM Normative Instruction / Item in the standard requires the disclosure, for three years, of the maximum, average and minimum compensation of executives. In practice, the salaries of all the presidents of publicly traded companies ended up being published online, as they are the companies' highest salaries.
“The violation of the privacy of these professionals is obvious, as the CVM regulations impose — in a clear innovation to the regime created by the SA Law — that data relating to their salaries remain published on the internet for three years”, maintained the Ibef defense. .
According to the lawyers, “companies are already obliged, by the Brazilian Corporation Law, to inform the global amount paid to their administrators. In other words, the market is already fully aware of how much each company spends on its executives. What is discussed in the original action is the legality of individualizing and identifying this information”.