What are corporate governance levels and what are they for?
They are the set of rules and conduct practices for companies, their managers and controllers, designed to minimize the potential conflicts of interest between them, an important factor for good appreciation of stock and other assets issued by the company.
Currently, there are 5 special listing segments:
It should be emphasized that adoption of the principles is voluntary and its classification depends on the degree of commitment assumed with the BM&FBovespa according to each segment.
Companhias Nível 1 largely undertake to improve methods of disclosure to the market and to disperse their shares among the largest number of shareholders possible.
Companhia Nível 1
To be classified as a Companhia Nível 2 the company and its controlling shareholders must adopt and observe a much broader range of corporate governance practices and minority shareholder rights.
Companhia Nível 2
The main innovation of Novo Mercado concerns the capital stock, which must be solely represented by common shares (voting shares).
Companies listed on Bovespa Mais tend to attract investors who see more accentuated development potential in the business. Share offers can be targeted to select investors who tend to view return as a medium to long term matter.
The Bovespa Mais Nível 2 segment allows the company to be listed, with preferred and ordinary shares admitted for trading, without there being an offering as the firm has up to seven years to hold the IPO. This is ideal for companies that wish to access the market gradually.