Minority shareholder protection in the reform of law n o 6404/76

Abstract

This study analyzed the reform of Law No. 6404/76, with the approval of Law No. 10303/2001, concerning protection of minority shareholders. Data were collected by a closed questionnaire with a Likert scale, answered by 40 non-financial companies traded on the Bovespa. Evaluation was supported by statistical tests, Chi-square, to evaluate existence of a standard of unanimity for answers and Kruskal-Wallis, when agreement was not possible on some issues, to analyze the extent of agreement in relation to the number of ordinary and preferred shares compared to totals of the shares and controlling group. The survey identified unanimity of response, except for the rule one action-one vote and adoption of the obligatory rule of tag along in 100%. In companies where the controlling group or individual had a large participation in preferred shares, respondents tended to ratify effectiveness of these two exceptions to protect minority shareholders.