The Principle of Segregation of Duties Applied to Corporate Law

Abstract

The Principle of Segregation of Duties was created by the Business area, more specifically in the Accounting and Internal Control field, and refers to the segregation of potentially conflicting duties, many often connected to monitoring activities. Accounting and conciliation are examples of duties usually segregated at companies, along with contracting and payment, as well as regulation (risk management) and monitoring (audit). In terms of Brazilian Corporate Law, mainly considering the Civil Code and the Corporation Law, there are no findings showing the Principle of Segregation of Duties has been unquestionably included therein. Notwithstanding the above, as shown next, the rationality of the Principle can be found in our main legislation and it is also related to the Corporate Law institutes and principles of Corporate Governance.