Federal Supreme Court (STF) Minister Nunes Marques extended the deadline for negotiations involving the Union’s voting rights in Eletrobras by 90 days. The matter is still pending a decision in the Federal Administrative Conciliation and Arbitration Chamber.
In early August, the minister responded to a request from Attorney General of the Union and Eletrobra. The request relates to the Direct Action of Unconstitutionality (ADI) 7.385. The judge extended the deadline for conciliation negotiations for 45 days.
Parties acknowledge controversy
At the time, it was reported that the agreement was at an advanced stage and the parties continued to seek a consensus solution. In formulating the new extension request, AGU and Eletrobras highlighted the complexity and sensitivity of the controversy.
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They also assured that the goal is to resolve the issue comprehensively and definitively. The institution proposed stability and confidence in the signed contract to avoid disputes and legal uncertainty.
STF demands progress in negotiations
Responding to the request, Minister Nunes Marques highlighted the need to ensure the end of the conciliation negotiations to increase legal certainty and the public interest.
The judge also determined that, at the end of the period, the parties involved must demonstrate their commitment to resolving the dispute, progress in negotiations and adjustments made, even if only partial.
Government questions influence decisions
At ADI 7.385, President of the Republic, Luiz Inácio Lula da Silvastated that, following the privatization of Eletrobras and changes in its regulations, the Union retained approximately 42% of the company’s ordinary shares.
At the same time, according to the president, the government has reduced the right to exercise voting rights to less than 10% of the voting capital. Lula said the restriction was unnecessary because it did not determine the success of privatization.
For governments, the burden borne by the EU is disproportionate when considering the public asset investments and social interests at stake.
Read also: “Privatized, Eletrobras Turns Losses and Reports Profit in Q4 2023”
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