Petrobras (PETR4) will not call AGE for Magda Chambriard; market sours with the decisionPetrobras (PETR4) confirmed on Thursday (17) that there would be no Extraordinary General Meeting (AGE) for the appointment of Magda Chambriard as a member of the Board of Directors.
Chambriard is the nominee by the Ministry of Mines and Energy (MME) to take on the role of CEO of Petrobras following the dismissal of Jean Paul Prates.
The oil company’s decision not to convene an AGE for the appointment of Magda Chambriard as a member of the Petrobras Board of Directors is within the legality and discretionary power of the company.
In Petrobras’ bylaws, it is made clear that it is the Board’s responsibility to elect the directors, which eliminates the need for an AGE for this purpose.
“Legally speaking, Petrobras (PETR4) is fully justified in its decision, since the company’s bylaws clearly attribute to the Board of Directors the responsibility for electing the directors,” comments Arthur Longo Ferreira, partner in the Financial Markets and Capital Markets Law areas at Henneberg, Ferreira e Linard Advogados.
Lack of AGE for Chambriard’s entry sours Petrobras shareholdersFerreira explains that the company is not breaking any rules by proceeding in this manner, as it strictly follows the guidelines established in its own constitutive documents.
“However, this decision has caused discontent among some shareholders, who expected greater participation in the process.
The absence of an AGE can be seen as a lack of openness and dialogue with investors,” points out Longo.According to the lawyer, the negative impression of a lack of room for dialogue can negatively impact the oil company.
Shareholders, under Article 18 of the Bylaws, can elect the members of Petrobras’ Board, who will play a key role in guiding and supervising the company’s management, including the election of the directors.”While Petrobras is operating within its rights, there is no legal requirement for calling an AGE for the election of the board.
However, it is important for the company to clearly communicate the reasons for this decision and demonstrate a commitment to transparency and shareholder engagement,” concludes the markets lawyer.PETR4 shares continue to decline at the opening of the stock exchange this Friday (17).
Since the dismissal of the former President of Petrobras on Tuesday night, the shares have fallen by 9.54%.Today, around 10:55 AM Brasilia time, Petrobras’ preferred shares were trading at R$ 37.13, with a slight decrease of 0.4%.
