|
|
 | | | |
- close
- close
- close
- close
PBR » Topics » If holders of our ADSs exchange their ADSs for common or preferred shares, they risk losing the ability to remit foreign currency abroad and forfeiting Brazilian tax advantages.This excerpt taken from the PBR 20-F filed May 22, 2009. If holders of
our ADSs exchange their ADSs for common or preferred shares,
they risk losing the ability to remit foreign currency abroad
and forfeiting Brazilian tax advantages.
The Brazilian custodian for our common or preferred shares
underlying our ADSs must obtain a certificate of registration
from the Central Bank of Brazil to be entitled to remit
U.S. dollars abroad for payments of dividends and other
distributions relating to our preferred and common shares or
upon the disposition of the common or preferred shares. If
holders of ADSs decide to exchange their ADSs for the underlying
common or preferred shares, they will be entitled to continue to
rely, for five Brazilian business days from the date of
exchange, on the custodian’s certificate of registration.
After that period, such holders may not be able to obtain and
remit U.S. dollars abroad
upon the disposition of the common or preferred shares, or
distributions relating to the common or preferred shares, unless
they obtain their own certificate of registration or register
under Resolution No. 2,689, of January 26, 2000, of
the Conselho Monetário Nacional (National Monetary
Council), which entitles registered foreign investors to buy and
sell on the São Paulo Stock Exchange. In addition, if such
holders do not obtain a certificate of registration or register
under Resolution No. 2,689, they may be subject to less
favorable tax treatment on gains with respect to the common or
preferred shares.
If such holders attempt to obtain their own certificate of
registration, they may incur expenses or suffer delays in the
application process, which could delay their ability to receive
dividends or distributions relating to the common or preferred
shares or the return of their capital in a timely manner. The
custodian’s certificate of registration or any foreign
capital registration obtained by such holders may be affected by
future legislative or regulatory changes and we cannot assure
such holders that additional restrictions applicable to them,
the disposition of the underlying common or preferred shares, or
the repatriation of the proceeds from the process will not be
imposed in the future.
|
| |||||||
