Credity Recovery | In a Pro-Creditor Decision, The Brazilian Superior Court Validates Attachment of Debtor’s Equity Interests in a Company

In a recent decision pro-creditors decision, the Brazilian Superior Court of Justice (STJ) consolidated the understanding that it is possible to seize the debtor’s shareholding in a single-person company for the payment of his creditors.

According to the STJ, the execution of the share capital does not depend on its fractionation and can be carried out through partial or total liquidation of the company. In the present case, it was understood that the debtor had transferred all of his assets to the company, leaving him without means to satisfy the credit. In this way, the court ordered the attachment of the shares of the single-member company, belonging to the debtor.

In that regard, it was highlighted that, according to the Brazilan Supreme Court of Justice (STF), the credits corresponding to the partners’ shares make up their individual assets, forming part of the general guarantee that their creditors have. Thus, the constitution of a single-member company, resulting from the will, contributions and effort of a single partner, will generate credit for its exclusive benefit.

Therefore, in a context of intense search for assets, the pledge of debtors’ shares, even in the case of a unipersonal company, may prove to be a favorable alternative for creditors seeking to satisfy their credit.


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