The advisers representing the private shareholders of Petrobras (PETR4) voted against the changes to the state company’s charter announced on Monday 23.
According to sources with access to the matter, there was a daily struggle to convince representatives of the shareholders of the capital market to give up the large profits achieved by the previous management. “They’re spoiled by the stratospheric gains they’ve made in recent years,” said one source, speaking on condition of anonymity.
According to the sources, the attempt during the board meeting where the bylaws were amended was to remove the flexibility of the free cash flow reserve, arguing that because it had no distributions it would be illegal to do so. Resistance was eventually overcome with a majority of councilors voting in favor of the change.
The state-owned company announced on Monday that it will convene an extraordinary general meeting (AGE) to amend its Articles of Association to create reserve capital, make dividend distributions more flexible and suspend the ban on the appointment of administrators.
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According to an exclusive interview given Broadcasting (Grupo Estado Real Time News System) on Monday Petrobras Director of Governance and Compliance Mario Spinelli, the EGM should take place between the end of November and the beginning of December.
He stated that the company intends to maintain the Charter in accordance with state law and that there will be no reduction in requirements when hiring administrators.
“The change will bring the statute up to date, regardless of the decision of the judiciary (on the state law),” the director said, referring to the Federal Supreme Court (STF) discussion of the legal requirements for the appointment of administrators.
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