Deforestation on the Amazon

The environmental law of Brazil is complex and extensive, as it encompasses one of the most complete environmental legislation across the globe. In the past, some of these laws may not have been substantially enforced but this has been changing in recent years.

Businesses attempting to build office buildings and utilize the resources of Brazil will have to abide by the country’s environmental laws. As such, consulting a Brazilian attorney could prove beneficial for remaining compliant with all regulations.

In 1981, the Brazilian Environmental Policy was passed, which made businesses and factories liable for the amount of pollution they contributed within the country’s borders. From that point forward, polluters were responsible for the amount of damage they caused in Brazil.

The Brazilian Ministry of the Environment is the agency responsible for ensuring that all businesses operating within Brazil remain compliant to every environmental policy. Environmental licensing also has to be provided for any businesses that may impact the climate of the country and is coordinated through a number of federal agencies in Brazil.

The government’s initiatives seem to be working. The Wall Street Journal reported on November 27 that deforestation in Brazil’s Amazon region has slowed dramatically. This is most likely because government officials have improved the detection of illegal farming and logging.

“Their effort is a major step forward, even compared with advances in previous years,” Doug Boucher from the Cambridge, Massachusetts-based Union of Concerned Scientists, told the news source. “An additional drop of 27 percent is quite substantial, and it comes at a time when there’s substantial economic growth.”

Businesses attempting to expand in Brazil and utilize the country’s natural resources will have to abide by its environmental protection legislation. As such, partnering with a Brazilian law firm experienced in environmental laws will likely benefit a company’s long-term goals.

Richest Man “Lemman”

Eike Batista, former richest man in Brazil, can no longer claim the title, as the billionaire has lost half of his wealth due to unstable shareholding prices, according to Forbes. In March, Batista had a net worth of $30 billion but it has since dropped down to $18.6 billion.

Batista’s shares in natural resource startups had plunged recently by 6.8 percent. Batista has also fallen from the list of top 10 richest people in the world and beer baron Jorge Paulo Lemann has been gaining ground to make the list of richest Brazilian since June of this year.

Lemann’s investment in Burger King, of which he holds 29 percent of shareholding, put him on the map back in March. Bloomberg reported that Lemann is currently worth $18.9 billion due to the fact that he invested in shares of Anheuser Busch InBev and developed a $52 billion merger with the company, which is the largest beer manufacturer globally.

“Eike has the potential for explosive returns, but it’s also a business full of challenges,” Chris Palmer, who manages $2.5 billion of assets as London-based director for Henderson Global Investors Ltd, told the news source. “The performance of the companies that Lemann controls has been very strong.”

Lemann and his two partners Marcel Herrmann Telles and Carlos Alberto Sicupira have seen their wealth grow by 50 percent in the past year, partially due to major investments in Brazil and international companies.

When business owners are looking to develop mergers or partake in beneficial transactions in Brazil, contacting experienced lawyers from a Brazilian law firm can ensure that all contracts and negotiations are run favorably. The Brazil legal system can be complex and consulting a knowledgeable attorney will keep businesses compliant with all laws.

Merger in Brazil

Business law can be a complex topic for executives who are investing in property and other transactions in foreign countries. For instance, mergers and acquisitions are often accomplished across country borders.

While Brazil contract law is a challenging topic on its own, developing mergers with Brazilian businesses can be even more confounding. The Civil Code plays a role in dictating contracts and business doings for smaller, limited companies, according to the publication Corporate Compliance Insights. The Corporation Law, on the other hand, is used in terms of the reorganization of a business’s structure, shareholders’ agreements and tender offers.

Both private and public companies must follow the Corporation Law when developing merger or acquisition agreements. A Brazilian attorney can help businesses maintain regulatory compliance and point companies in the right direction regarding their merger activity in this country.

The Brazilian Securities and Exchange Commission as well as the Central Bank of Brazil are both in charge of ensuring businesses remain compliant during their financial dealings during a take-over.

Bloomberg Businessweek reported that Jorge Paulo Lemann is currently the richest man in Brazil, partially because of acquisitions and savvy business dealings. Lemann was able to gain this status after surpassing commodities tycoon Eike Batista, who had been the richest Brazilian until recently. In 2008, Lemann and his partners, Marcel Herrmann Telles and Carlos Alberto Sicupira, completed a $52 billion merger with Anheuser Busch InBev NV.

“The performance of the companies that Lemann controls has been very strong,” Chris Palmer, London-based director of global emerging markets at Henderson Global Investors Ltd, told the news source. “He’s built on the success of his companies in Brazil and partnered with global companies.”

Other business owners looking to ensure their company thrives should consult experienced lawyers from a Brazilian law firm, which helps negotiate and develop beneficial contracts concerning an international merger or acquisition.

Lawsuit against Amazon

Businesses that are working with international companies or selling their products across borders may end up in a dispute for a multitude of different reasons, including contract issues, employee miscommunications or merger development problems.

However, not all parties may want to go to court due to minor disputes. As such, a Brazilian attorney can help businesses negotiating in this country mediate their concerns through dispute resolution tactics.

Companies that avoid going to court will not spend as much time and resources focused on monetary settlements. However, not all entities are able to work out their issues through mediation proceedings.

Two such parties include the governments of Brazil and Peru, which have filed a complaint against Amazon.com preventing the company from obtaining new internet domains, according to the Global Post.

The filed claims state that, if the e-commerce firm uses the URL it intends to, then it “would prevent the use of this domain for purposes of public interest related to the protection, promotion and awareness raising on issues related to the Amazon biome.”

Nonetheless, attorneys specializing in mediation can help business owners reach an agreement and put an end to their dispute. The third party lawyer acts as a mediator and includes a timetable to structure the proceedings.

The Brazilian laws that are focused on mediation procedures include the Civil Code Introductory Law and the Code of Civil Procedure. These laws set up attorneys for dealing with international cases needing dispute resolution.

The use of arbitration in the Brazil legal system is currently on the rise, as businesses have a more confidential type of proceeding and the press cannot get a hold of the information like in a court case. Other benefits include the lack of enforcement in the final ruling, which allows both parties to remain in communication about their ultimate decisions regarding their dispute.

Brazilian Civil Code

Businesses often have to develop transactions on an international basis and creating and signing contracts are all a part of this process. In Brazil, contract law has variations from the United States. It is based on the Brazilian Civil Code and may even take the Consumers’ Code into account, which protects the a product’s end user.

Operating under a civil code instead of a common law code means that there are specific requirements and regulations written out for practically every type of contract available, including lease agreements, business relations, insurance contracts, and patents or copyright law.

Overall, most parties can enter into a contract as long as it isn’t illegal, immoral or the agreement sets forth impossible standards that either party cannot meet. Once a contract has been signed, it becomes binding for both parties to fully achieve the agreement set forth.

A major part of the Brazil contract law includes the prohibition of favoring one party in an agreement over another. In plainer terms, one person cannot gain all of the advantages while the other must overcome challenges.

When breaking contracts, the business owner or executive will technically be committing an illegal act. Another major illegal action was taken by former Brazilian officials who allegedly gave contracted work to businesses in exchange for bribes, according to The Rio Times. Some experts have been analyzing whether former President Luiz Inácio Lula da Silva will be implicated in the scandal.

“[Lula’s] image is very solid as the president who improved the lives of Brazilians,” Alberto Almeida of Instituto Análise, a political consulting firm, told the news source. “Furthermore, he appointed a successor who is doing a good job. So he is very highly rated and respected by most of the population.”

In order for U.S.-based businesses to understand the contract laws in Brazil, they should contact a Brazilian law firm with experienced attorneys who have vast knowledge on the country’s legal system.