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Investment in a single subsidiary or controlled company is considered relevant when it reaches 10% of the investor's equity
AnswerAn investment in a single subsidiary or controlled company is considered relevant when its book value equals or exceeds 10% of the investor's equity.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| What is considered | Criterion | Source | Date of data |
|---|---|---|---|
| Individual relevant investment | Book value equal to or greater than 10% of the company's equity | Law 6.404/1976, art. 247, sole paragraph, “a” | 27/05/2009 |
| Collective relevant investments | Book value equal to or greater than 15% of the company's equity | Law 6.404/1976, art. 247, sole paragraph, “b” | 27/05/2009 |
Data consulted on 02/10/2026.
Basis
- Law No. 6.404/1976, compiled (Planalto, in Portuguese): Article 247 and its sole paragraph define the relevance percentages for investments in subsidiaries and controlled companies in the explanatory notes.
- Law No. 6.385/1976 (Planalto, in Portuguese): this regulation establishes CVM and defines its supervisory power over public companies and their subsidiaries or controlled entities.
How it applies
For the purpose of preparing explanatory notes, the company must identify whether it has investments in subsidiaries or controlled entities that exceed the legal thresholds. The calculation considers the book value of the investment relative to the company's own equity. In addition to the individual test (10%), there is the collective test (15%), which assesses whether the sum of investments in all subsidiaries and controlled entities reaches the second threshold, requiring disclosure of these details in the financial statements. For calculating relevance, the company's credit balances against those entities must also be considered.
Limits
- The definition of relevance contained in Art. 247 applies specifically to the content of explanatory notes on investments in subsidiaries and controlled entities.
- The calculation of relevance must observe the investor's credit balances against the investee as stipulated in Art. 248, § 1, of Law 6.404/1976.
- This form does not exhaust the disclosure requirements imposed by CVM on public companies.
- Changes after the review date should be verified directly in official sources (Planalto).