Atlas · Capital markets
The initial validity period attributed to common shares with plural voting is up to 7 years
AnswerThe initial validity period attributed to common shares with plural voting is up to 7 (seven) years, and its extension is permitted observing the legal approval requirements.
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Criterion | Detail | Source | Data date |
|---|---|---|---|
| Initial validity period | Up to 7 (seven) years | Lei 6.404/1976, art. 110-A, § 7.º | 26/08/2021 |
| Extension | Permitted for any period | Lei 6.404/1976, art. 110-A, § 7.º | 26/08/2021 |
| Vote limit | No more than 10 votes per share | Lei 6.404/1976, art. 110-A | 26/08/2021 |
Data consulted on 02/10/2026.
Basis
- Lei n.º 6.404/1976, compiled (Planalto, in Portuguese): article 110-A establishes the conditions, limits, and terms for the creation and validity of common shares with plural voting.
How it applies
Companies may provide for plural voting in their bylaws, allowing the creation of classes of common shares with a voting weight higher than standard, respecting the cap of 10 votes per share. The initial validity of this regime is up to 7 years. The extension of this period is permitted, provided it is submitted to specific approval quorums, with the exclusion of holders of the class whose extension is sought from the relevant votes and the guarantee of withdrawal rights to dissenting shareholders. In addition to the initial term, the bylaws may provide for the termination of plural voting conditioned on specific events.
Limits
- The plural voting rule does not apply to state-owned companies, mixed-economy corporations, their subsidiaries, and companies controlled by the government.
- The creation of plural voting in publicly held companies requires that the class be constituted before the trading of any shares or convertible securities in organized markets.
- After the start of trading in organized markets, amending the characteristics of plural voting is prohibited, except to reduce rights or advantages.
- Certain deliberations, such as executive compensation and relevant related-party transactions, are not subject to plural voting.
- Subsequent amendments to Law 14.195/2021 must be verified directly at the official source.