Brazil Establishes New National Rules for Judicial Recovery Administrators

Brazil's National Justice Corregidoria has introduced new national regulations to govern the appointment, monitoring, remuneration, and accountability of administrators in judicial recovery processes. This initiative seeks to bring greater uniformity, transparency, and legal security to the crucial role these professionals play in helping companies navigate financial crises.

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The initiative integrates the 'modernization agenda conducted by the national justice corregidor, Minister Mauro Campbell Marques, and seeks to confer greater uniformity, transparency, and legal security to the performance of these professionals, responsible for performing an essential function in procedures of great economic and social impact.

The new rules are part of a broader modernization agenda led by National Justice Corregidor Mauro Campbell Marques. They address practical issues observed in the field, such as the concentration of appointments among a few individuals, the lack of consistent parameters for assessing administrators' operational capacity, and the risks associated with conflicts of interest. The regulations aim to strengthen control mechanisms and enhance transparency.

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The objective is to establish mechanisms that promote greater transparency, balance, efficiency, and confidence in the conduct of these processes, reaffirming the commitment of the National Corregidoria to increasingly modern, ethical justice prepared to respond.

Significant advancements include the creation of national parameters for objective remuneration in large-scale judicial recovery cases. The regulations mandate that magistrates be provided with reasoned proposals, including information on operational structure, technical team, costs, and work estimates. Furthermore, a national database for fees will be established to track amounts set across the country with uniform criteria.

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The measure strengthens legal certainty, expands the publicity of judicial acts, and contributes to remuneration reflecting, proportionally, the actual complexity of the services provided.

Minister Campbell highlighted that these measures will bolster legal certainty, increase the publicity of judicial acts, and ensure that remuneration proportionally reflects the complexity of the services rendered. He emphasized that improving the performance of judicial recovery administrators strengthens the public policy of business recovery, directly impacting economic activity, job preservation, and the protection of creditors and investors.

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The performance of these professionals has direct impacts on the preservation of economic activity, the maintenance of jobs, and the protection of the interests of creditors and investors.