ltda X s.a

Issue Limitada S/A
Bureaucracy and fulfillment of legal requirements - Fewer corporate and accounting books to be kept;

- Not required to disclose (by publishing) all resolutions and financial statements; - Required to keep many corporate and accounting records;
- Required to publish and file with the local Board of Trade the resolutions of the administrative council/directors and financial statements;
Funding - Cannot be funded by public issue of shares, only through the contribution of the quotaholders and debt financing; - More flexible sources of funding: besides receiving contributions from shareholders and debt financing, S/A companies are entitled to obtain capital through the issue of shares to the public at large;
Voting quorums - Regulated by law, but there are some doubts about some quorums due to the lack of clarity of the new law; - Clearly stated in law for several matters;
Minority quotaholders/shareholders rights - Minority shareholders with more than 25% of capital makes it possible for them to block corporate decisions under certain circumstances; - Minority shareholders usually do not have many voting rights, unless the bylaws provide otherwise;
Shareholders/Quotaholders Agreement - There are no specific regulations. Usually S/A regulations are used as a standard; - The aspects and enforceability of a shareholders agreement are exhaustively regulated;
Withdrawal right - Only in case of a capital increase; - Several cases are regulated;
Exclusion of partner - The law foresees the possibility of the exclusion of a partner; -There are no provisions in this regard;
Regulation - Brand new regulations (dated 2002 and enforceable since January 2003); - S/A law was passed in 1976 and many specific aspects have been extensively regulated;
Court decisions - There are almost no court decisions concerning the new Limitada. - Court understandings and trends are well known and have already been extensively analyzed.

Aspecto Limitada S/A