KEY TAKEAWAYS

• The fiscal council mechanism serves as a tool for shareholders aiming to secure representation within a company and to provide oversight over board and management panels.
• The installation of fiscal councils at Brazilian companies has increased following full implementation of the Remote Voting Card (RVC) in 2018. In 2023, approximately 26 percent of Brazilian companies covered by ISS conducted fiscal council elections, representing an increase from around 11 percent in 2017.
• The implementation of procedural voting items in the RVC has improved the exercise of shareholders’ rights to establish a fiscal council and elect minority representatives.
• The introduction of the RVC resulted in the election of a higher number of minority shareholder representatives on fiscal councils.