CONSTITUTION OF BRAZIL
TITLE VII - THE ECONOMIC AND FINANCIAL ORDER
CHAPTER I - THE GENERAL PRINCIPLES OF THE ECONOMIC ACTIVITY
Article 170. The economic order, founded on the appreciation
of the value of human work and on free enterprise, is intended to ensure
everyone a life with dignity, in accordance with the dictates of social
justice, with due regard for the following principles:
I - national sovereignty;
II - private property;
III - the social function of property;
IV - free competition;
V - consumer protection;
VI - environment protection, including by means of different treatments in accordance to the environmental impact of products and services and their respective production and rendering;
VII - reduction of regional and social differences;
VIII - pursuit of full employment;
IX - preferential treatment for small enterprises organized under Brazilian
laws and having their head-office and management in Brazil.
Sole paragraph - Free exercise of any economic activity is ensured to everyone,
regardless of authorization from government agencies, except in the cases
set forth bv law.
Article l7l. (revoked).
Article 172. The law shall regulate, based on national interests,
the foreign capital investments, shall encourage reinvestments and shall
regulate the remittance of profits.
Article 173. With the exception of the cases set forth in this
Constitution, the direct exploitation of an economic activity by the State
shall only be allowed whenever needed to the imperative necessities of
the national security or to a relevant collective interest, as defined
Paragraph 1 - The law shall establish the juridical estatute of the public company, the mixed capital company and their subsidiaries which explore economic activity of production or trading of goods or rendering of services, with provisions for:
I - their social function and the ways of accounting by the State and society;
II - the compliance with the legislation proper of the private companies, including as regards to civil, commercial, labor and tax rights and duties;
III - bidding and contracting of buildings, services, purchases and sales, with observance to the principles of public administration;
IV - the constitution and functioning of their administrative and fiscal councils, with participation of minor stock holders;
V - the terms, the performance evaluations and the liabilities of the administrators.
Paragraph 2 - The public companies and the mixed-capital companies may
not enjoy fiscal privileges which are not extended to companies of the
Paragraph 3 - The law shall regulate the relationships of public companies
with the State and society.
Paragraph 4 - The law shall repress the abuse of economic power that
aims at the domination of markets, the elimination of competition and the
arbitrary increase of profits.
Paragraph 5 - The law shall, without prejudice to the individual liability
of the managing officers of a legal entity, establish the liability of
the latter, subjecting it to punishments compatible with its nature, for
acts performed against the economic and financial order and against the
Article 174. As the normative and regulating agent of the economic
activity, the State shall, in the manner set forth by law, perform the
functions of control, incentive and planning, the latter being binding
for the public sector and indicative for the private sector.
Paragraph I - The law shall establish the guidelines and bases for planning
of the balanced national development, which shall embody and make compatible
the national and regional development plans.
Paragraph 2 - The law shall support and encourage cooperative activity
and other forms of association.
Paragraph 3 - The State shall favour the organization of the placer-mining
activity in cooperatives, taking into account the protection of the environment
and the social-economic furthering of the placer-miners.
Paragraph 4 - The cooperatives referred to in the preceding paragraph
shall have priority in obtaining authorization or grant for prospecting
and mining of placer resources and deposits in the areas where they are
operating and in those established in accordance with article 21, XXV,
as set forth bv law.
Article 175. It is incumbent upon the Government, as set forth
by law, to provide public utility services, either directly or by concession
or permission, which will always be through public bidding.
Sole paragraph - The law shall provide for:
I - the operating rules for the public service concession- or permission- holding
companies, the special nature of their contract and of the extension thereof,
as well as the conditions of forfeiture, control and termination of the
concession or permission;
II - the rights of the users;
III - tariff policy;
IV - the obligation of maintaining adequate service.
Article 176. Mineral deposits, under exploitation or not, and other
mineral resources and the hydraulic energy potentials form, for the purpose
of exploitation or use, a property separate from that of the soil and belong
to the Union, the concessionaire being guaranteed the ownership of the
Paragraph 1 -