Eletrobras: AGU must challenge privatization in the STF – 05/04/2023 – Panel SA

The AGU (Attorney General of the Union) is preparing a Direct Action of Unconstitutionality with the Federal Supreme Court in the coming days, questioning the privatization of Eletrobras. It is expected to be filed in the coming days.

The measure is the result of a mission given by President Luiz Inácio Lula da Silva to Minister Jorge Messias right at the beginning of the government to try to increase the decision-making power of the Union in the company privatized in June last year.

People who participated in the discussions claim that Lula asked Messias to seek a legal solution.

The action, according to people who participated in the discussions, does not try to cancel the capitalization process, which, last year, injected R$ 37 billion into the company, diluting the government’s participation.

What causes Lula discomfort is the fact that the Union holds almost 35% of the shares, but votes on the company’s board with only 10% of the shares. The government wants to have more influence on decisions.

It was considered asking public banks to acquire shares to sit on the board, but this idea was abandoned, as it would configure the formation of a control block, something vetoed by the new company’s bylaws and also by the capital market.

The ADI is also a way to stress the situation in the company as much as possible so that the government can negotiate changes in the bylaws with the current shareholders who have representatives on the board of directors.

With Diego Felix

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