Atlas · Capital markets
The maximum period of temporary disqualification to hold office is 20 years
AnswerThe Securities and Exchange Commission of Brazil (CVM) may apply the penalty of temporary disqualification, for a maximum period of 20 years, to hold office as an administrator or fiscal council member in publicly held companies or regulated entities.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Criterion | Consequence | Source | Data date |
|---|---|---|---|---|
| Administrators and fiscal council members | Violators of CVM rules, Law 6.404, or regulatory rules | Temporary disqualification up to a maximum of 20 years | Law 6.385/1976, art. 11, item IV | 12/07/2017 (Law 13.506) |
| Members of the distribution system or registered entities | Practice of prohibited activities or violations | Temporary disqualification up to a maximum of 20 years | Law 6.385/1976, art. 11, item VI | 12/07/2017 (Law 13.506) |
Data consulted on 10/02/2026.
Basis
- Lei n.º 6.385/1976 (Planalto, in Portuguese): art. 11 lists the penalties applicable by the CVM, defining in item IV the temporary disqualification of up to 20 years for administration and fiscal council offices, and in item VI the same penalty for the exercise of regulated activities.
- Lei n.º 6.404/1976 (Planalto, in Portuguese): art. 147 establishes the ineligibility for administration offices of publicly held companies of persons declared disqualified by an act of the CVM.
How it applies
Temporary disqualification is an administrative sanction applied by the CVM to violators of legal and regulatory rules of the capital market. The penalty prevents the individual from holding office as an administrator or fiscal council member in publicly held companies, distribution system entities, or other entities that depend on authorization or registration with the CVM. The punishment may be applied separately or cumulatively with other sanctions, such as fines, warnings, or revocation of registrations.
Limits
- Disqualification is restricted to administrator and fiscal council offices, or to the exercise of activities covered by Law 6.385/1976.
- The factsheet does not cover specific criteria for the dosimetry of the penalty, only the legal time limit.
- Subsequent changes to CVM sanctioning rules or the Corporation Law must be mandatorily checked in official sources (Planalto and CVM) before any practical application.