Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Brazil's Petrobras board supports rules for political appointments

Published 10/23/2023, 02:06 PM
Updated 10/23/2023, 06:26 PM
© Reuters. FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes

By Marta Nogueira

RIO DE JANEIRO (Reuters) -Brazilian state-run oil company Petrobras said on Monday that its board voted to change its bylaws, and two people with knowledge of the matter said the move would pave the way for politicians to occupy top positions at the company.

The change, which is subject to shareholder approval, would reverse 2016 rules adopted when Brazil passed a law to curb political appointments at state firms following a huge corruption probe centered around Petrobras.

Brazil's Supreme Court has yet to rule on that law's constitutionality, but an injunction issued by one of the court's judges in March lifted a restriction on the appointment of politicians who recently held office to positions as directors or board members.

In a statement on Monday, Petrobras told investors the bylaw change seeks to address the injunction, and that the firm will only restrict appointments if a law expressly calls for it.

Petrobras shares closed more than 6% lower on Monday in Sao Paulo.

One of the sources, who spoke on condition of anonymity, said the change would allow politicians to participate in the "day-to-day running of the company."

After markets closed, Petrobras issued a second statement, saying the change is "simply to keep Petrobras' bylaws updated."

Latest comments

politician will do corruption and must not be allowed to run the company
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.