CVM Instruction No. 451 of April 3, 2007

CVM INSTRUCTION NO. 451 OF APRIL 3, 2007

Amends CVM Instruction No. 398, of October 28, 2003.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on March 27, 2007, in view of the provisions of Art. 2, item IX, and Art. 8, item I, of Law No. 6,385, of December 7, 1976, as amended by Law No. 10,303, of October 31, 2001, and Art. 42 of Provisional Measure No. 2,228-1, of September 6, 2001,

HAS RESOLVED TO ISSUE THE FOLLOWING INSTRUCTION:

Art. 1. Articles 2, 9, 10, and 12 of CVM Instruction No. 398, of October 28, 2003, shall enter into force with the following wording:

“Art. 2. ...

I - ...

a) projects for the production of independent Brazilian audiovisual works produced by Brazilian companies;

b) construction, renovation, and recovery of exhibition halls owned by Brazilian companies;

c) acquisition of shares of Brazilian companies for the production, commercialization, distribution, and exhibition of independent Brazilian audiovisual works, as well as for the provision of cinematographic and audiovisual infrastructure services;

d) projects for the commercialization and distribution of independent Brazilian cinematographic audiovisual works carried out by Brazilian companies; and

e) infrastructure projects carried out by Brazilian companies.

II - ...

III - COMPANY HOLDING A PROJECT APPROVED BY ANCINE – a company with predominantly national capital, which may take any of the corporate forms provided by Law, except for projects included in item 'c' of item I above, is responsible for the production and/or execution of a PROJECT APPROVED BY ANCINE, as well as for the provision of accounts regarding the use of resources from FUNCINE, in whose name the project approval is published in the Official Gazette of the Union, in accordance with ANCINE's regulations; and

IV - BRAZILIAN COMPANY: a society constituted under Brazilian laws, with headquarters and administration in the country, whose majority of total and voting capital is directly or indirectly owned by native or naturalized Brazilians for more than 10 (ten) years, who must exercise decision-making power in fact and in law.” (NR)

“Art. 9. At least 90% (ninety percent) of the resources applied in FUNCINE must be directed to ventures of the types enumerated in item I of Art. 2 of this Instruction, observing, regarding each type of destination, the minimum percentages to be established in its regulations.

...

§ 3. In the case of investments of the destination type provided for in item 'a' of item I of Art. 2 of this Instruction, it must be provided for in a contract or declaration by the COMPANY HOLDING A PROJECT APPROVED BY ANCINE that the audiovisual works subject to the FUNCINE investment have their broadcasting and dissemination guaranteed, within the time frame and manner specified in said contract or declaration, as applicable.

...
” (NR)

“Art. 10. For the purpose of applying FUNCINE resources, broadcasting services companies and telecommunications service providers may not hold controlling shareholdings in the companies referred to in item 'c' of item I of Art. 2 of this Instruction.” (NR)

“Art. 12. Audiovisual works of an advertising, sports, or journalistic nature may not constitute the object of FUNCINE investment.” (NR)

Art. 2. This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed by
MARCELO FERNANDEZ TRINDADE
President