Brazil Securities Commission fines Saraiva Livreiros chair BRL 340,000 and closes fund management case for lack of standing

The Brazil Securities Commission (CVM) has concluded two sanctioning proceedings, imposing a fine on Olga Maria Barbosa Saraiva for voting to approve her own accounts as a shareholder, and terminating a separate case against Marcos Jorge without a decision on the merits after finding he lacked passive standing. In the first case, opened by the Superintendence of Corporate Relations, the CVM found that Saraiva, as shareholder and chair of the board of Saraiva Livreiros S.A. (in judicial reorganisation), breached Article 115(1) of Law 6,404 by voting in favour of approving her own accounts at the ordinary and extraordinary shareholders’ meeting on 23 August 2023. The decision was unanimous and followed the opinion of CVM President João Pedro Nascimento as reporting officer, resulting in a BRL 340,000 fine; an appeal with suspensive effect may be filed with the National Financial System Appeals Council. In the second case, opened by the Superintendence for Institutional Investor Supervision concerning an alleged irregular provision of investment fund management services under Article 1 of CVM Instruction 558, the CVM unanimously declared the proceeding extinguished without ruling on the merits after recognising Marcos Jorge’s lack of passive standing. President João Pedro Nascimento and Director João Accioly joined the outcome and issued separate voting statements, while Director Marina Copola declared a conflict and did not participate.