MANAGEMENT ADJUSTMENT TERM AND ITS INTERCONNECTION WITH RECOVERY LAW

Abstract

The Public Administration has adopted consensualism as a fundamental principle, promoting participatory democracy and enhancing the interaction between different branches of law. The necessity for a multidimensional legal tool that integrates various areas of knowledge has become essential to meet the expectations of legal professionals. The increasing complexity of society, driven by technological advances and economic interdependence, has demanded innovative approaches to public administration. The Resolution No. 59/2017 of the Court of Auditors of the State of Paraná (TCE-PR) exemplifies this evolution by introducing new managerial models and fostering greater efficiency in public governance, incorporating private law references such as corporate governance, compliance, and alternative dispute resolution mechanisms.

Brazil’s federalist structure requires a decentralized administration, where public service delivery plays a fundamental role. Given the extensive reach and critical nature of these services, the government delegates their execution to private entities, often in the form of large corporate conglomerates with complex legal structures. However, in times of financial crisis, these structures may present challenges that impact public-private relationships and require innovative legal instruments to ensure service continuity. The Term of Management Adjustment (TAG) emerges as a viable and legally sound alternative to address contingencies related to administrative contracts and judicial recovery processes involving public service concessionaires and permit holders.

The TAG serves as an administrative efficiency and control tool that allows for the temporary suspension of penalties through a consensual agreement. In judicial recovery scenarios, this mechanism is crucial in preventing contract termination and ensuring uninterrupted service delivery. The recent reform of the Brazilian Bankruptcy Law (Law No. 14.112/2020) has reinforced the role of conciliation and mediation as viable alternatives for resolving disputes, thereby ensuring legal certainty and economic stability. The integration of the TAG within public administration aligns with constitutional efficiency principles, promoting modernization and optimization of public services while maintaining regulatory compliance.

Thus, the TAG not only strengthens public governance mechanisms but also plays a crucial role in the judicial recovery of companies operating under administrative contracts. Its proper application ensures the continuity of essential services, stabilizes contractual relations, and fosters a favorable environment for economic recovery. By balancing public and private interests, the TAG consolidates itself as a strategic tool for the modernization of Public Administration and the promotion of legal security within Brazil's business landscape.