Your rights as an investor

Investing in a private company does not remove your rights as an investor. Because this kind of investment is less standardized than a bank security, knowing what the law protects, what the documentation promises, and which rights simply do not exist is part of the decision. This guide organizes that set into seven points.

1. The right of withdrawal

Under CVM Resolution 88, ordinary withdrawal carries no penalty during a period of at least five days from the confirmation of the investment. Confirmation may occur through a transfer of funds or signature of the investment agreement, depending on the offer flow; the count therefore does not depend only on signature.

• Register the request through the channel indicated on the platform or in the offer documentation, within the deadline.
• Identify the investment with the contribution number and the name of the issuing company.
• Keep the registration receipt. It is what shows the request was made within the deadline.
• Check that the bank details on the destination account are correct.
• Follow the confirmation that the amount has been returned.

Once the right is exercised, the amount contributed is returned with no remuneration and no penalty. As a rule, the refund takes place within a short period, normally a few business days after the request is registered, as set out in the offer documentation.

2. Access to the documents and the information on the offer

• The offer document, with the description of the deal, the use of the funds and the risks assumed.
• The investment agreement or participation contract, which sets out the legal terms of the contribution.
• The studies, projections and supporting materials presented during the marketing stage.
• The documentation of the issuing company, such as its articles of association.
• The payment and transfer receipts for the amount sent to the company.

This set should be available before confirmation, not afterwards. If the platform offers only a summary without the attachments, or sends the main documentation only after the contribution, put the deal off and request the full material. You do not have to invest in order to have the right to read.

3. Taking part in shareholders' meetings

An equity participation may grant the right to take part in shareholders' meetings, within the rules of the instrument, the company's legal form, its articles and the law. The articles define quorums and voting. A debt instrument grants no shareholder rights before conversion; afterwards, rights follow the documented conditions. The rule does not require a company that is not a corporation to convert into that legal form.

4. Periodic information about the company

Under CVM Resolution 88, the agreement defines the issuer's continuing information, with a minimum semi-annual frequency while those duties apply. The platform publishes what it receives within the regulatory deadlines. These duties may end in the legal cases, so a permanent flow of reports is not promised.

• Check the channels indicated in the offer, where the updates received are made available.
• Request the financial statements and the management report.
• Check the company's registration with the Commercial Registry and the disclosures it is required to make.
• Keep every document with its date, because it is the sequence of them that shows how the business has evolved.

If the issuer fails to provide periodic information and does not cure the omission within 15 days, it becomes informationally defaulting and enters a public list. Reading the figures carefully remains part of the investor's role; publication is not a guarantee of performance.

5. The absence of FGC cover

In bankruptcy or liquidation, recovery depends on the instrument and the legal classification of the claim, the corporate structure, guarantees and remaining assets. Equity is own capital and is only repaid after creditors; debt receives the treatment defined by law and the agreement. There may be no recovery, and there is no FGC coverage.

6. How to complain when something goes wrong

• Start with direct support on the platform and keep the ticket number.
• If the response does not resolve the issue, use the CVM's Citizen Service for inquiries, complaints and reports about platforms and securities offers.
• Go to consumer protection bodies, such as Procon, when the relationship falls within their scope, taking the documentation of the problem with you.
• For specific measures concerning the agreement or the amounts, consider independent professional advice.
• If judicial action is needed, organize the agreement, receipts and reference numbers and assess the appropriate channel.

Every complaint has to leave a record: date, channel, content sent and reference number. Deadlines and stages depend on the channel used and the applicable rules. Do not assume an automatic response or a deadline that is not confirmed by the chosen channel.

7. What the investor does not have

• Return guarantee: there is no floor on gains and no commitment to a result. The company may improve, stay stable or deteriorate.
• Guaranteed early redemption: leaving earlier than planned depends on a contractual clause, on a foreseen event or on negotiating with another investor.
• Liquidity: there is no exchange floor, no offer book and no guaranteed buyer for your stake.

Knowing what you do not have matters as much as knowing what you do. A mature offer is one in which the limits show up with the same clarity as the opportunities. Read the documentation before you invest and, if any relevant right is missing, do not close the deal before you understand what is absent.