CVM confirms the possibility of meetings in the metaverse

Public companies in Brazil will be able to hold their meetings in the metaverse, a virtual space that recreates spaces and allows interaction between connected users.

In response to a consultation made in June by Abrasca, which brings together publicly traded companies, the Securities and Exchange Commission (CVM) understood, in technical opinion 146, that companies can use the technology as long as they respect the legal requirements that apply to traditional assemblies.

The endorsement to hold assemblies in the metaverse is part of the context accelerated by the pandemic, of virtual participation and adaptation of devices that support the option for digital. For example, in 2020, CVM Instruction 622, which amended CVM Instruction 481/2009, allowed hybrid or exclusively digital meetings to be held.

“Clearly, the metaverse already offers companies ample opportunities to develop their businesses. As with all new developments, we will face challenges in their adoption and regulation”, says lawyer Ana Paula Reis, partner at BMA Advogados, vice-president of Abrasca’s Capital Markets Commission and author of the association’s consultation with the CVM.

In the expert’s assessment, the municipality’s response confirms “the assertiveness in adopting a neutral regulation from a technological point of view, imbuing the norm of adaptability, allowing it to be extended over time and accompany technological innovations”.

“In short, we conclude that, based on the information presented in the consultation, we do not see any obstacle to holding shareholders’ meetings in the immersive metaverse space, provided that all requirements established in Law No. 6,404/1976 and CVM Resolution No. 81/22 are met, in addition to other standards that may be applicable”, according to technical opinion 146, which responds to the consultation.