AGU contests in the Supreme part of the law that privatized Eletrobras

The Attorney General’s Office (AGU) filed a lawsuit with the Federal Supreme Court (STF) this Friday (5) to question the constitutionality of provisions of Law 14,182/2021, the norm that authorized the privatization of Eletrobras. The action contests the section that deals with the reduction of the Union’s participation in the votes of the company’s board. According to the AGU, the law prohibited a shareholder, or group of shareholders, from exercising voting power greater than 10% of the number of shares. The document is signed by President Luiz Inácio Lula da Silva and by the Attorney General of the Union, Jorge Messias. In the understanding of the AGU, the federal government, as a shareholder, was harmed by the norm. The Union owns about 43% of the common shares. In the petition, the Attorney General’s Office emphasizes that the objective of the action is not to renationalize Eletrobras, but to safeguard the public interest and the property rights of the Union. The privatization of Eletrobras was approved by the National Congress and sanctioned by then-President Jair Bolsonaro in 2021. The company owns one third of the country’s electricity generating capacity. The company also owns almost half of the total transmission lines.

Agência Brasil