CVM Instruction No. 165 of December 11, 1991 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 165, OF DECEMBER 11, 1991, WITH CHANGES INTRODUCED BY CVM INSTRUCTION NO. 282/98.

CVM INSTRUCTION NO. 165 OF DECEMBER 11, 1991.

Establishes a scale reducing, based on share capital, the minimum percentage of shareholding necessary to request the multiple voting process for the election of members of the Board of Directors of a publicly held company.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on this date, and in accordance with the provisions of Art. 8, I, of Law No. 6.385, of December 7, 1976, and Art. 291 of Law No. 6.404, of December 15, 1976,

HAS RESOLVED:

Art. 1. Based on the value of the share capital of the publicly held company, it is optional for shareholders representing the share capital with voting rights, whether or not provided for in the bylaws, to request the adoption of the multiple voting process for the election of members of the Board of Directors, observing the table below:

SOCIAL CAPITAL INTERVAL
(In thousand Cr$)
MINIMUM PERCENTAGE OF
VOTING CAPITAL FOR
MULTIPLE VOTING REQUEST
VALUE
LOWER
VALUE
UPPER
(%)
0 1,200,000 10
1,200,001 2,400,000 9
2,400,001 6,200,000 8
6,200,001 14,000,000 7

CVM INSTRUCTION NO. 165 OF DECEMBER 11, 1991.
2
14,000,001 35,600,000 6
35,600,001 ----- 5

§1. The social capital values presented in the table contained in the caput of this article are in currency of 31.10.91 and must be considered, to produce their effects, with monthly monetary correction based on the variation of the INPC (National Consumer Price Index) or another that may replace it in the monetary updating of financial statements. If the index for the last period is not yet known on the date of correction, the previous official inflationary variation must be used, as an estimate.

§2. For classification purposes, the publicly held company will consider its share capital in effect on the last day of the month preceding the date of convening the Shareholders' Meeting, increased by the monetary correction reserve of the paid-in capital, both duly monetarily updated, based on the same index and criterion referred to in the preceding paragraph.

Art. 1. Based on the value of the share capital of the publicly held company, it is optional for shareholders representing the share capital with voting rights, whether or not provided for in the bylaws, to request the adoption of the multiple voting process for the election of members of the Board of Directors, observing the table below:

Social Capital Interval (R$1) Minimum Percentage of Voting Capital for Multiple Voting Request % 0 to 10,000,000 10 10,000,001 to 25,000,000 9 25,000,001 to 50,000,000 8 50,000,001 to 75,000,000 7 75,000,001 to 100,000,000 6

CVM INSTRUCTION NO. 165 OF DECEMBER 11, 1991.
3 above 100,000,001 5

Sole Paragraph. For classification purposes, the publicly held company will consider its share capital in effect on the last day of the month preceding the date of convening the Shareholders' Meeting, increased by the monetary correction reserve of the paid-in capital, if it still exists.

• Article with wording given by CVM Instruction No. 282, of June 26, 1998.

Art. 2. To each share, as many votes as there are members of the Board shall be attributed, with the shareholder recognized the right to cumulate votes in one candidate or distribute them among several.

Art. 3. The minimum percentage of participation in the voting capital necessary for the requisition of the adoption of multiple voting shall be included, obligatorily, in the notice convening the Shareholders' Meetings intended for the election of members of the Board of Directors of publicly held companies.

Art. 4. Non-observance of the provisions of this Instruction shall constitute a serious offense, subject to the application of the penalties provided for in Article 11, items I to VI, of Law No. 6.385/76.

Art. 5. This Instruction shall enter into force on the date of its publication in the Official Gazette of the Union, with CVM Instruction No. 164, of 05.11.91, being revoked.

Original signed by
ARY OSWALDO MATTOS FILHO
President