The Brazilian Supreme Court, unanimously, confirmed the constitutionality of Article 1, §1, of Law No. 5,709/1971, which equates Brazilian companies controlled by foreign capital to foreign companies for the purpose of acquiring rural properties.
Therefore, ACO 2463 was ruled in favor of the plaintiff and ADPF 342 was ruled against.
In practice, the decision reaffirms that Brazilian companies under foreign control remain subject to legal restrictions, including the need for authorization from INCRA and compliance with the area limits stipulated by law.
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