PROVISIONAL MEASURE # 1.958-28, OF March 2, 2000.

Disposal on the institution of credit companies to the microentrepreneur, changes devices from the Leis n^the 6,404, December 15, 1976, 8,029, April 12, 1990, and 8,934, of November 18, 1994, and gives others provider.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 62 of the Constitution, adopts the following Interim Measure, with force of law:

Art. 1º The institution of credit societies to the microentrepreneur is authorized, which:

I-will have per exclusive social object the provision of financing to physical persons and microenterprises, with a view to the facilitation of ventures of a professional, commercial or industrial nature, of small size, by equipping themselves with the financial institutions for the purposes of the legislation in force ;

II-will have its constitution, organization and operation disciplined by the National Monetary Council ;

III-shall subject itself to the supervision of the Central Bank of Brazil ;

IV-will be able to use the institute of fiduciary disposal in their credit operations ;

V-will be prevented from capitating, in any form, resources to the public, as well as issuing securities and securities intended for public placement and offers.

Art. 2º The art. 146 and the caput of the art. 294 of Law No. 6,404 of December 15, 1976, with the amendment introduced by Law No. 9,457 of May 5, 1997, pass vigorously with the following essay:

?Art. 146. They may be elected to members of the natural persons administration bodies, and the members of the board of directors shall be shareholders and the directors residing in the Country, shareholders or not.

§ 1º The minutes of the general assembly or of the board meeting that elect administrators should contain the qualification of each of the elected and the management deadline, be filed in the trade and published record.

§ 2º The possession of the resident advisor or domiciled abroad is conditional on the constitution of resident prosecutor in the Country, empowered to receive citation in actions against him proposed on the basis of societal legislation, with term of validity coinciding with that of the mandate.? (NR)

?Art. 294. The closed company that has fewer than twenty shareholders, with net worth less than R$ 1,000,000.00 (one million reais), can:? (NR)

Art. 3º The art. 11 of Law No. 8,029 of April 12, 1990 introduced by art. 2º of Law No. 8,154 of December 28, 1990, passes in addition to the following § 2º, alternating the current single paragraph to § 1º and giving new wording to its caput:

?Art.11. ....................................................................................................................................

§ 1º The resources referred to in this article, which will be aimed primarily at supporting the development of micro and small businesses through projects and programmes aimed at their technical improvement, rationalization, modernization, managerial empowerment, as well as facilitating access to credit, capitalization and the strengthening of the secondary market of capitalisation securities of these companies, will have the following destination:

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§ 2º Projects or programmes intended to facilitate access to credit referred to in the previous paragraph may be effective:

a) through the targeting of financial applications, in public or private financial agents, for lastreating the provision of aval or bail in credit operations aimed at micro enterprises and small-sized businesses ;

b) by the application of financial resources in financial agents, public or private, Organizations of the Civil Society of Public Interest that it treats Law No. 9,790 of March 23, 1999, duly registered in the Ministry of Justice, who engage in alternative credit systems, or credit societies that have per exclusive social object the grant of financing to the microentrepreneur ;

c) by the acquisition or integralization of shareholding shares in mutual funds of emerging companies that target at least fifty percent of their resources to the capitalization of micro and small businesses, defined in law, mainly the technological base and the exporters ;

d) by participation in the entity capital regulated by the Securities Commission-CVM that stimulates the strengthening of the secondary market of capitalization securities of micro and small businesses.? (NR)

Art. 4º The art. 10, the caput of the art. 11, the inciso II of the art. 12 and the inciso II of the art. 37 of Law No. 8,934 of November 18, 1994, pass vigorously with the following essay:

?Art. 10. The Plenary, composed of Vogais and their alternates, will consist of at least eleven and at most twenty-three Vogais.? (NR)

?Art. 11. The Vogais and their alternates will be appointed, in the Federal District, by the Minister of State for Development, Industry and Foreign Trade, and in the States, unless otherwise provided, by the governments of these constituencies, among Brazilians that meet the following conditions:

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?Art. 12. ...................................................................................................................................

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II-a Vogal and respective supplier, representing the Union, by appointment of the Minister of State for Development, Industry and Foreign Trade ;

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?Art. 37. ...................................................................................................................................

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II-declaration of the holder or administrator, affirmed under the terms of the law, of not being prevented from exercising trade or the administration of market society, by virtue of criminal conviction ;

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Art. 5º Stay convalidated the acts practiced on the basis of the Provisional Measure No. 1.958-27 of February 3, 2000.

Art. 6º This Provisional Measure shall come into force on the date of its publication.

Brasilia, March 2, 2000 ; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Alcides Lopes Tacks