Eletrobras: Lula asks the STF to overturn the voting ban – 05/05/2023 – Market

President Luiz Inácio Lula da Silva (PT) asked the STF (Supreme Federal Court) this Friday (5) to declare part of the Eletrobras privatization law unconstitutional so that the Union has a vote proportional to its shareholding in the company.

The request, made through the AGU (Advocacy-General of the Union), tries to overturn the section of the law that prohibits a shareholder or group of shareholders from casting votes in excess of 10% of the number of shares into which the voting capital of the company is divided. company —an understanding that would apply only to shareholders with that position before privatization.

The lawsuit states that the Union retained 43% of the common shares, considering direct control and other forms of participation, but had its voting power reduced to less than 10% of the voting capital after the law.

“The rule came only to harm the Union’s political rights in favor of the company’s other minority shareholders”, says the request forwarded to the Supreme Court.

In a note, the Union’s attorney general, Jorge Messias, states that “the Union is responsible for managing the Brazilian electrical system” when justifying the action.

“Any crisis that affects the company cannot be resolved except in the sense of preserving its activity, which means, ultimately, the very continuity of the national economy”, says Messias.