The Public Prosecutor’s Workplace (AGU) entered the Supreme Federal Court docket (STF) on Friday (5) with an motion to ban the factors from privatizing Eletrobras.
The measure was additionally signed by President Luiz Inacio Lula da Silva.
Signifies that the federal government questions
The federal government is questioning the elements of the Eletrobras privatization regulation that cope with shareholders’ voting energy. The federal government is conscious that the regulation has sometimes lowered the burden of the votes it’s entitled to.
The federal government owns 42.61% of the frequent shares of Eletrobras. However, because of the Eletrobras privatization regulation, the federal government’s vote share was restricted to 10%. That’s as a result of the privatization turned Eletrobras right into a “company,” a personal capital agency and not using a controlling shareholder.
Subsequently, no shareholder has greater than 10% voting energy, even with extra frequent shares. The mechanism was constructed into the privatization regulation to forestall, for instance, a personal group from taking management of the corporate.
The identical mannequin was adopted within the privatization of Embraer.
“The general public energy owns roughly 43% of the peculiar shares, however can solely train votes as much as a restrict of 10% of the variety of shares within the voting capital of the corporate. We’re assured that the court docket will restore to the union the proper to completely train its political rights in This gigantic sector of nationwide electrical energy,” the union’s lawyer basic, Jorge Messias, wrote on Twitter.
The intention is to not undo privatization
Within the lawsuit, the American Badger Affiliation states that the objective is to not search the re-nationalization of Eletrobras, as it is a subject that “actually, ought to be debated by the Nationwide Congress, together with in gentle of that court docket’s jurisprudence.”
Lula referred to as privatization “Leonine”
Lula had already mentioned, in February, that the federal government would contest facets of the privatization.
“It was extra like banditry in order that the federal government wouldn’t have a majority in Eletrobras once more. We, together with, maybe, the federation’s lawyer basic, will go to court docket in order that we will overview this Leonine contract towards the federal government,” the president mentioned on the time.
- Lula criticizes the privatization of Eletrobras and says that the AGU will request a overview of the contract
- Eletrobras privatization: see the questions and solutions
See how distribution will work for many who have invested FGTS sources in Eletrobras