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The digital age and corporate relations: the importance of the hybrid model

The Coronavirus pandemic has led to a series of changes in the daily lives of people who have quickly adapted to a new reality, the so-called 'new normal'. This was no different in the corporate world. Faced with the need for social distancing, companies were forced to change protocols and find technological solutions in the face of an exceptional situation, with the aim of continuing their activities without accumulating backlogs and reducing productivity. In this challenging scenario, not only have companies and corporate practices modernized in a short space of time, but regulatory and registration bodies have also started to consolidate alternatives and new procedures, thus allowing the market to adapt to the new normal. On the one hand, we are faced with the publication of CVM Instruction 622/2020, which authorized publicly traded companies to hold general meetings partially or completely digitally, and on the other, commercial registries have implemented developments in the registration of corporate acts with the aim of offering 100% digital processes. Throughout this pandemic year in Brazil, and in the face of continuing social distancing measures, technology has become a 'sine qua non' tool in the business world, leading not only to a leap in the evolution of virtual communication programs and applications, but also to a need to adapt the legal framework. In this context, the Civil Code and Law No. 6,404/1976 were amended to expressly allow shareholders' meetings and general meetings to be held remotely, either as a hybrid or entirely virtually. This innovation was brought about by Law No. 14.030/2020, which included Art. 1.080-A in the Civil Code and amended Art. 121 of Law No. 6.404/1976. If at the beginning of 2020 it was believed that the intensification of virtual relations would be a palliative and temporary measure, today we know that it is more definitive. Meetings and gatherings, which used to take place mostly in person, have quickly migrated to the digital world, which has expanded the communication channel between investors, shareholders and corporate law professionals, and brought more dynamism to corporate governance relations. Along with the benefits generated by this virtual boom have come challenges, most of them arising from technical issues and the need for human beings to adapt. At the same time as we are faced with a reality that has narrowed the channels of communication between partners/shareholders, making company meetings more inclusive and reducing costs, we are also faced with a totally new universe, susceptible to incorrect handling, lack of culture, connection problems and instability of the virtual platform. This can be detrimental to some participants, who are unable, for example, to fully present their considerations or follow the progress of the meeting. Hence the importance of the so-called 'hybrid' model, where everyone can participate in a meeting or assembly in the way that best suits them, whether remotely or in person. In an era of constant adaptation to new technologies, there must be flexibility to accommodate the preferences of each investor, manager or partner, respecting each one's profile. In the words of business law specialist Leonardo Barém Leite: "We believe that the ideal is the hybrid model, covering investors of all types and profiles, who will choose the format that best suits them. It is important that preferences and choices are accepted and respected." Naturally, with the growing improvement of communication technologies, the trend is for corporate relations to increasingly take place virtually. However, we can't expect the migration to be immediate and total, requiring a period of adaptation to this new digital culture and resolution, or at least mitigation, of the challenges it poses. When used well, technologies boost human relations and enable more effective and dynamic communication, as well as helping to improve corporate governance practices. It is therefore expected that 2021 will be a crucial year, in which the evolution of the new normal will be in the 'hybrid' format of corporate communications, which will bring entrepreneurs closer to the benefits of the virtual universe in a more natural way.