Chamber manifested itself in the action filed by the AGU against part of the privatization of Eletrobras.| Photo: Fernando Frazão/Agência Brasil

The Chamber of Deputies defended this Monday (5) in the Federal Supreme Court (STF) the maintenance of Law 14,182 of 2021, a norm that authorizes the privatization of Eletrobras. The House’s manifestation was included in the action filed by the Attorney General’s Office (AGU) that questioned the constitutionality of the section of the law that deals with the reduction of the Union’s participation in the votes of the company’s board.

The law prohibited shareholders from exercising voting power greater than 10% of the number of shares. The Chamber’s lawyers argue that any suspension of the section of the law could generate legal uncertainty and frustrate the expectations of shareholders who acquired Eletrobras’ capital, informed Agência Brasil.

“Sudden and unexpected changes can cause uncertainty and trigger a serious crisis of confidence, not only among Eletrobras shareholders, but throughout the market. Brazilian State, for breaching the principle of trust”, stated the Chamber.

In the action, the AGU maintains that the federal government, as a shareholder, was harmed by the norm. The Union owns about 43% of the common shares. According to the agency, the purpose of the action is not to renationalize Eletrobras, but to safeguard the public interest and property rights. The case is reported by Minister Nunes Marques. There is no deadline for judgment.