Magazine Luiza´s shares are traded at B3 (The São Paulo Stock Exchange) under the code “MGLU3”. They are traded in the Novo Mercado segment, which represents the highest level of distinguished corporate governance practices.
This special listing is, under B3 definition, a listing segment designed for shares issued by companies that voluntarily undertake to abide by corporate governance practices and transparency requirements in additional to those already requested by the Brazilian Law and CVM (Brazilian Securities and Exchange Commission).
Novo Mercado have the following additional obligations:
- Public share offerings have to use mechanisms to favor capital dispersion and broader retail access.
- Maintenance of a minimum free float, equivalent to 25% of the capital.
- Same conditions provided to majority shareholders in the disposal of the Company’s Control will have to be extended to all shareholders (Tag Along).
- Establishment of a two-year unified mandate for the entire Board of Directors, which must have five members at least, of which at least 20% (twenty percent) shall be Independent Members.
- Disclosure of annual balance sheet, according to standards of the IFRS.
- Improvements in quarterly reports, such as the requirement of consolidated financial statements and special audit revision.
- Obligation to hold a tender offer by the economic value criteria, in case of delisting or cancellation of registration as publicly-held company.
- Compliance with disclosure rules in trades involving securities issued by the company in the name of controlling shareholders.
- Some of these obligations must be approved at the General Shareholders Meetings and included in the corporate bylaws.