Frequently Asked Questions

Frequently Asked Questions

There are two types of shares in the Brazilian market: Common and Preferred.

Common shares are those that confer shareholders the right to participate in a company´s earnings and the right to vote at shareholders´ meetings.

Preferred shares are characterized for having priority upon the distribution of dividends and, in the event the company is dissolved, they have priority in receiving the distribution of its capital. Preferred shares do not confer the right of vote in shareholders´ meetings, except in special situations. In general, a larger percentage is set aside for preferred shares than for common shares for the purpose of the distribution of dividends. Braskem preferred shares are divided into two different classes: Class A (PNA) and Class B (PNB).

Regarding form, shares are nominative or book entry

Braskem chose the book entry form for its shares since the system offers greater safety and convenience for shareholders.

The most important trading market for Braskem's common shares (BRKM3), class A preferred shares (BRKM5) and class B preferred shares (BRKM6) is the São Paulo Stock Exchange, BM&Bovespa. Its common shares and class A preferred shares began traded on the São Paulo Stock Exchange on November 11, 1980. Our class B preferred shares began traded on the São Paulo Stock Exchange on August 19, 1983.

On December 21, 1998, ADSs representing our class preferred shares (BAK) began being traded on The New York Stock Exchange.

On October 8, 2003, Braskem listed its class A preferred shares (XBRK) on the LATIBEX, a stock market for Latin American issuers that is quoted in euros on the Madrid Stock Exchange. Our class A preferred shares are traded on the LATIBEX in unitary lots.

According to the third paragraph of Braskem´s Bylaws, class B preferred shares can be converted into class A preferred shares at any time at a ratio of two class B preferred shares for each class A preferred share.

To make this transaction, the shareholder must contact the depositary bank, Banco Itau on the following phone number: +55 (11) 3003-9285 capital and metropolitan areas or 0800 7209285 other localities.

These new listing segments have been designed for the trading of shares issued by companies that voluntarily undertake to abide by corporate governance practices and disclosure requirements in addition to those already required under the Brazilian Corporation Law. The inclusion of a company in any of the new segments requires adherence to a series of corporate governance rules. These rules are designed to increase shareholders´ rights and enhance the quality of information provided by Brazilian corporations. Braskem joined BM&FBovespa´s Corporate Governance Level 1 on February 13, 2003.

Shareholders and others who have ownership rights over Braskem shares can receive services through the branches of Banco Itaú, the bank that acts as the custodian of registered shares. Services offered include:

  • Information about shareholdings;
  • The transfer of shares (between individuals, due to death, by judicial order, for consolidation/breakup of deposit accounts);
  • The receipt of shareholder activation documents;
  • Share subscription;
  • The payment of dividends and interest on own capital;
  • Registration changes (change in name of shareholder, of address, of bank account, of the setting up or the closing of a bank account for the crediting of dividends);
  • Change of CPF/CNPJ, change of number or type of identity document;
  • Annotation of the blocking of shares;
  • Bonuses, share consolidation and splits, mergers and spinoffs.

Shareholders may receive service via mail. For this, the correspondence must be signed by the shareholder and be accompanied by a notarized copy of the identification documents.

The mail must be sent to: Itaú S/A - Serviço de Ações - Rua Boa Vista, 176, 1 under-ground, CEP 01092-900 - São Paulo - Capital. Banco Itaú is available for answering shareholder questions by phone at: +55 (11) 3003-9285 capital and metropolitan areas or 0800 7209285 other localities.

The shareholding position may only be disclosed to the shareholder himself or a person who has been formally authorized for this purpose. The proper documentation must be presented to a branch agency of Banco Itaú.

To receive service at depositary banks, shareholders should present the following documents (original or notarized copy):

Individuals (for minors, please see specific topic):

  • CPF;
  • Identity Document;
  • Proof of Residence.

Estate

Death certificate, CPF of the shareholder and RG (Identity Document) and CPF(s) of the heir(s);
Estate executor´s inventory list, of the shareholder and RG and CPF(s) of the heir(s);
Judicial order or inventory list where the CPF of the shareholder and the heir(s), the quantity, type and issuing company must be listed;

Companies

Individual company (commerce or service provider)

  • Individual signature (commerce or service provider)
  • Registry with the city government of trade board;
  • Updated CNPJ (former CGC) card;
  • Legally valid Negative Tax Debt Certificate issued by the city government or the trade board;
  • CPF and identity card of the owner.

Foundation

  • Updated CNPJ (former CGC) card;
  • CPF and identity document of the representative;
  • Minutes of the meeting that elected the representative;
  • Company by-laws.

Ltda (limited partnership company)

  • Updated CNPJ (former CGC) card;
  • Contract for opening the company and the latest contract change (with legally valid certification from the trade board, if altered more than 12 months previously);
  • CPF and RG (Identity Document) of the partner/director.

S. A. (corporation)

  • Updated CNPJ (former CGC) card;
  • Company by-laws;
  • Minutes of the election of the current executive management;
  • CPF and identity document of the company directors.

S/C (civil company)

  • Updated CNPJ (former CGC) card;
  • Contract for opening the company and the latest contract change (with legally valid certification from the trade board, if altered more than 12 months previously);
  • CPF and identity documents of the managing partners

Minors

Minors under 21 can trade their shares if represented by their parents or a legal guardian, who must possess personal documents and documents proving they are responsible for the minor. In the case of minors under 16, a Citst Order must be presented authorizing the sale or transfer of title of the shares.

By power of attorney

The holder of the power of attorney must present a notarized original copy to proxy instrument. According to its purpose, the following requirements must be satisfied:

A power of attorney for request of the shareholding position or to receive income. The power of attorney must:

  • Contain/Give full authority for this purpose before the company that issued the shares;
  • Must contain the name and CPF of shareholder.

Power of attorney to transfer shares. The power of attorney must:

  • Contain full authority for this purpose:
  • Be granted individually and be irrevocably and non-retractably binding on the company that issued the shares;
  • List the quantity and type of shares and the destination of the transfer.
  • Contain attachments, notarized copies of the transferring party´s RG (Identity Document) and CPF, if the shareholder is an individual. Companies must present the above-mentioned documents.

Furthermore, all powers of attorney must:

  • Contain only one grantee;
  • Contain a public title, if issued in different legal jurisdictions than where they are being presented;

Shareholders should go to any branch of Banco Itaú and, according to the type of change that needs to be made, present a notarized copy of the documentation listed below:

a) Address:

  • hareholders must present RG, CPF and recent proof of residence, which must be in their name.

b) Name, marital status:

  • Shareholders must present the documentation that changed their name (marriage certificate, divorce, contractual change, etc.).

c) CPF/CNPJ:

  • Shareholders must present the previous CPF/CNPJ and the current one or the PEX contract and the current CPF/CNPJ.

Earnings may be paid in two ways: dividends or interest on own capital.

The distribution of dividends is conducted on an annual basis, as long as the company has posted profits during the period in question and the balance of the accumulated profit / loss account is positive.

The interest on own capital may be distributed in lesser intervals than on an annual basis.

The dividends may be received through a credit deposit in their bank account, for which the shareholder need only maintain an updated registration of the account data with Banco Itaú, the depositary institution for the Braskem Group´s shares. Earnings will be available to shareholders for a period of 3 (three) years as of the initial date of payment. At the end of this term, the dividends are extinguished and the amounts revert to the company.

An ex-dividend share is that which is acquired after the holding of the shareholders´ meeting that decided about the distribution of dividends. The dividends are credited in favor of the prior shareholder; that is, the one who held the rights to the share upon the date of the meeting, with the rights belonging to those who were shareholders before the meeting.