Atlas · Capital markets
The maximum term of the express mandate for a portfolio manager to exercise voting rights is one year
Answer1. The maximum term of the express mandate for a portfolio manager to exercise voting rights regarding shares under their management may not exceed one year, pursuant to art. 25 of Law 6.385/1976.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Criterion | Consequence | Source | Data date |
|---|---|---|---|---|
| Portfolio manager | Exercise of voting rights on shares under their management | Requires express mandate with a term not exceeding one year, under prohibition of exercise | Law 6.385/1976, art. 25 | 07/12/1976 |
Data consulted on 02/10/2026.
Basis
- Lei n.º 6.385/1976 (Planalto, in Portuguese): art. 25 establishes that, unless there is an express mandate with a term not exceeding one year, the portfolio manager and the securities custodian may not exercise the voting rights pertaining to the shares under their management or custody.
How it applies
Legislation prohibits the exercise of voting rights by a portfolio manager regarding shares under their management, unless there is an express mandate with a maximum validity of twelve months. This requirement aims to protect investors' interests, ensuring the manager has specific and temporary powers to make deliberative decisions. Without this instrument formalized within the legal time limit, the manager is legally barred from voting in meetings or related votes on the assets under custody or management.
Limits
- This fact sheet covers exclusively the maximum term of the express mandate for a portfolio manager to exercise voting rights according to the informed law.
- The versions read are those published by Planalto; subsequent amendments must be checked at the source.