Nunes Marquez is the rapporteur of the AGU’s work which questions the points of privatization of Eletrobras | Policy

Minister Nunes Marquez will be rapporteur of the action taken by the Public Prosecutor’s Office (AGU) of the Supreme Federal Court (STF) which questions aspects of the privatization of Eletrobras. The measure, which was introduced on Friday (5), was signed by President Luiz Inacio Lula da Silva.

The distribution of the operation to the minister was based on the so-called prohibition rule. The Minister is already analyzing other proceedings with a similar theme being dealt with in court.

The privatization of Eletrobras was authorized by Congress in 2021 and completed on the stock exchange in June 2022.

The government wants to discuss the parts of the Eletrobras privatization law that deal with shareholders’ voting power. The government is aware that the law has infrequently reduced the weight of the votes it is entitled to.

Public Authority owns 42.61% of the common shares of Eletrobras. But due to the Eletrobras privatization law, the government’s vote share was limited to 10%. That’s because the privatization turned Eletrobras into a “corporation,” a private capital firm without a controlling shareholder.

In this model, no shareholder has more than 10% voting power, even with more common shares. The mechanism was built into the privatization law to prevent, for example, a private group from taking control of the company. The same model was adopted in the privatization of Embraer.

For the company, the privatization process took place in accordance with the legislation passed by the legislature and the Federal Constitution.