Novo Mercado (New Market) is a listing segment of B3 for the trading of shares issued by companies that commit themselves voluntarily to adopt

corporate governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions th ...

practices in addition to those that are required by law. The value and

liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liqui ...

of the shares are positively influenced by the degree of security offered by the rights granted to shareholders and the quality of information provided by the companies. This is the basic premise of the Novo Mercado. The entry of a company in New Market place by signing a contract and requires adherence to a set of corporate rules, generally referred to as "good corporate governance practices, more stringent than those present in the Brazilian legislation. These rules, consolidated in the Listing Rules of the Novo Mercado, expand shareholder rights, improve the quality of information usually provided by companies and widespread ownership, and to determine the resolution of corporate conflicts by a Board of Arbitration offer investors the security of an alternative more responsive and specialized. The main innovation of the Novo Mercado, in relation to legislation is the requirement that the capital of the company is composed only of

common shares Common stock is a form of corporate equity (finance), equity ownership, a type of security (finance), security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or or ...

. However, this is not the only one. For example, the company opened a participant in the New Market has the additional obligations: * Extension to all shareholders the same conditions obtained by the controllers when the sale of the company's control (tag along). * Implementation of a public offer to acquire all

outstanding shares Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representi ...

, at least by the economic value, the chances of closing the capital or cancellation of registration of trading on the Novo Mercado. *

Board of Directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

with a minimum of 5 (five) members and unified term of up to 2 (two) years, reelection being permitted. At least 20% (twenty percent) of the members should be independent directors. * Improving the information provided, adding to the Quarterly Information (ITR) - a document that is sent by companies listed on the CVM and the BOVESPA, available to the public and contains quarterly

financial statements Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...

- among others: financial statements and

statement of cash flows In financial accounting, a cash flow statement, also known as ''statement of cash flows'', is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to opera ...

. * Uma S/A aberta, quando assina com a Bolsa de São Paulo um contrato de corporativa denominado Novo Mercado a empresa terá queemitir 25% de ações ordinárias junto ao público, ter seus dados financeiros de acordo com as normas internacionais de contabilidade (IFRS), e se a empresa venha a vender o seu controle acionário, os acionistas possuidores de ações ordinárias receberão 100% desse valor. *Among other demand Also present in the Listing Rules, some of these commitments must be approved in General Meeting and included in the Company's Bylaws.

References

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External links

Bovespa's Official Home Page (in English)

References

External links

See also