At the STF, the Chamber defends the law that privatizes Eletrobras

The Chamber of Deputies defended, this Monday (5), at the Federal Supreme Court (STF), the maintenance of Law 14,182 of 2021, a norm that authorizes the privatization of Eletrobras. The manifestation of the House was inserted in the process in which the Advocacy-General of the Union (AGU) questioned, last month, the constitutionality of the section of the law that deals with the reduction of the participation of the Union in the votes of the company’s board. The law prohibited shareholders from exercising voting power greater than 10% of the number of shares. The Chamber’s lawyers argue that an eventual suspension of the section of the law could generate legal uncertainty and frustrate the expectations of shareholders who acquired capital from Eletrobras. “Sudden and unexpected changes can cause uncertainty and trigger a serious crisis of confidence, not only among Eletrobras shareholders, but throughout the market. Brazilian State, for breaching the principle of trust,” said the House. In the action, the AGU maintains that the federal government, as a shareholder, was harmed by the norm. The Union owns about 43% of the common shares. According to the agency, the purpose of the action is not to renationalize Eletrobras, but to safeguard the public interest and property rights. The case is reported by Minister Nunes Marques. There is no deadline for judgment.

Agência Brasil