In a recent decision (Special Appeal No. 1,982,730/SP), Brazil’s Superior Tribunal de Justiça (STJ) reaffirmed the understanding that the quotas held by the sole shareholder of a Single-Member Limited Liability Company (“Single-Member Company”) may be subject to seizure to satisfy personal debts, as they form part of the shareholder’s assets.
The sole shareholder, as in multi-member companies, exercises typical corporate rights such as the receipt of profits, and therefore the quotas have an economic nature. Accordingly, where no other seizable assets are available, the creditor may seek the expropriation of the quotas through their sale or through the liquidation of the company, always observing legal limits and, where possible, preserving the continuity of the business.
The Court emphasized that the seizure of quotas must be a subsidiary and exceptional measure—that is, it should not be used as the first means of enforcement. It also clarified that any surplus proceeds from the sale of the quotas, after satisfaction of the debt, must be returned to the debtor (Article 907 of the Brazilian Code of Civil Procedure and Article 1,026 of the Civil Code).
This position reaffirms the possibility that business assets may be indirectly reached in specific circumstances, without disregarding the company’s separate legal personality. What is protected is not “unlimited shielding,” but rather a balance between legal certainty and the satisfaction of creditors’ claims.