Eletrobras: Shareholder questions influence of 3G Radar – 06/13/2023 – Market

Minority shareholder of Eletrobras and representative of the company’s employees, Asef (Association of Employees of Furnas) filed on Monday (12) a questioning with the CVM (Securities and Exchange Commission), so that the company in the electricity sector provides clarification on information published in a report by the Sheet about the influence of the manager 3G Radar in the formation of the board of Eletrobras.

Director of Asef, Felipe Araújo says that, given the power that a common shareholder who owns only 0.05% of the shares with voting rights appears to have to form the company’s board, corporate governance is well below the expectations that were created after privatization, which transformed Eletrobras into a “corporation”, which would be a company with no defined control.

According to a report by Sheet published on Sunday (11), although it has a residual stake in voting shares, manager 3G Radar invited 3 of the 9 members of the company’s board of directors.

“We, in the role of minority shareholder, keep asking ourselves what kind of governance is this”, says Araújo.

The director of the association recalls that the Union itself faced difficulties in changing the government representative on the board of Eletrobras, at the same time that a financial market agent appears to have disproportionate power to dictate the direction of the business. “What we are seeing is a shareholder with a power, in fact, very disproportionate to its shareholding capacity.”

Asef asks in the questioning filed with the CVM that an independent investigation be opened to confirm the influence of 3G in the company, with the removal of those mentioned in the matter while the work lasts.

The director adds that, ten days ago, the association had already filed a complaint with the CVM to investigate alleged negotiations for positions on the board of directors of Eletrobras, to which the company replied that it maintains “openness to transparent and constant dialogue with all its shareholders , mainly those of reference”.

“At the time, we were wondering what exactly that would be [acionista de referência]since there is no explanation about who these shareholders are”, says Araújo.

If the investigation is open and proves the manager’s disproportionate influence, it is necessary to rethink the corporate governance model in the Brazilian market, says the director of the association. “All minority shareholders are being grossly disrespected. It’s almost theater if this is really happening.”