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On the other hand, there are cases where public bidding could be waived, not required or even non-applicable, and a petobras in this regard shall be duly justified by an internal opinion issued by Petrobras. To such effect, the Petroleum Law established that the acquisitions of goods and services by Petrobras would be subject to a simplified bidding procedure to be regulated by Presidential Decree.

Such pre-contracts had to contain a resolutory condition whereby the relevant agreement would be terminated without penalty or indemnity, in case another bidder were to be declared winner.

Turn off more accessible mode. Article 68 of the Petroleum Law in turn contemplated that, for the preparation of proposals to participate in bidding preceding the concessions pefrobras exploitation and production of oil and natural gas, Petrobras could enter into pre-contracts by sending out invitation letters, in order to secure prices and commitments of delivery of goods and services. The Government-Controlled Companies Law now repealed article 67 of the Petroleum Law please refer to items 3 and 4 abovewhich established the aforementioned simplified public bidding procedure for Petrobras.

Some vetoes to the Government-Controlled Companies Law included the following, among other matters: As a general rule, the sale of assets shall also be subject to an appraisal of the assets to be sold. The obligation to submit contracts generally entered into with the public authorities to public lsi proceedings is established in the Brazilian Federal Constitution article 37, item XXIas regulated by Law No.


Such Statutory Audit Department shall be composed of 3 to 5 members mostly independent members and shall resolve on li following matters, among others: Nome do Advogado Categoria Categoria. The public bidding procedure may also be waived when the selection of the partner by these government-controlled companies is related to its special particulars, specific and determined business opportunities, provided that the unfeasibility of a competitive procedure is justified. Public bidding procedures and agreements commenced or entered into by government-controlled companies up to 24 months after the issuance of the Government-Controlled Companies Law shall be grandfathered and, therefore, still be governed by the previous legislation.

However, article 67 of Law No. Government companies and mixed-capital companies already existing prior to the issuance of the Government-Controlled Companies Law shall take the necessary measures to adapt to such new legislation within 24 months.

The Government-Controlled Companies Law also contemplates the creation of petrobraz compliance and risk area, an internal audit and, as an auxiliary body of the Board of Directors, a Statutory Audit Department for government-controlled companies.

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Pursuant to Presidential Decree No. Turn on more accessible mode.

Ldi Government-Owned Companies Law. According to the Petroleum Law, Petrobras shall be able to compete with other companies in an equitable manner for the carrying out of its corporate purposes.

The appointed individuals shall have a good reputation and knowledge, in addition to the following requirements: It was then forwarded by the Senate to the President of the Republic, who partially sanctioned it on June 30, Although Petrobras was generally subject to public bidding principles, such public bidding were to be proceeded in a simplified manner as compared to the requirements and formalities of the Public Bidding Law.

There are also restrictions for election of members of the Board of Directors and Executive Committee, especially those who at least 3 years before the appointment date have entered into agreements or partnership as suppliers, purchasers, claimants or as offering parties of assets or services of any kind in connection with the political-administrative entity that controls the government-controlled company.


Said article 68 was also now revoked by the Government-Controlled Companies Law. The members of the Board of Directors and the Executive Committee shall have a unified term of office, which shall not be superior to 2 years, 3 consecutive reelections being permitted.

Government companies and mixed-capital companies shall be prohibited, in an election year involving positions in the public administration entity to which they relate, to incur marketing and sponsorship expenses that exceed the average spent in the 3 last years that preceded the request or in the last year immediately preceding the election.

On March 23,however, the Brazilian Supreme Court granted an injunction with respect to a writ of ;etrobras filed by Petrobras, which shall suspend the effects of the decision of Pettobras until such injunction is revoked or a final decision has been given on the writ of mandamus.

In addition, the provisions established in Law No.

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Such law shall also be applicable to government-controlled companies, which participate in consortium as operator and companies that are controlled by such government-controlled companies, including special purpose companies.

Expenses with marketing and sponsorships of government companies and petorbras companies shall not exceed, in each fiscal year, 0.

The public bidding principles set forth by the Public Bidding Law are applicable to all companies controlled by the federal government, states, federal district and municipalities, either directly or indirectly.

Vieira Coelho Ricardo E.