Unprecedented: Petrobras may have a board with five minority members

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A Petrobras it was the pivot of the increase in the perception of state risk in Brazil when President Jair Bolsonaro decided to remove former President Roberto Castello Branco and place General Joaquim Silva e Luna at the head of the company. The distrust of state-owned companies continues. But, even because of this situation, almost no one realized that the oil company may have a record number of representatives on the board of directors elected by minority shareholders – up to five members. Situation beyond unusual.

In the list of candidates for the board election that will take place at the general meeting on August 27, there are three names nominated by market investors: Marcelo Gasparino, Pedro Medeiros and Juca Abdalla. There are important mathematical chances that the trio will be elected. The result would force the controlling Union to increase the total number of members of the board of directors to 13. Thus, there would be seven representatives from the National Treasury (or the government), five from minority shareholders and the representative chosen by the workers.

In addition to the eight vacancies – or ten, depending on the result – that will be filled with this election, the collegiate already has Rodrigo Mesquita Pereira and Marcelo Mesquita, elected respectively by preferred shareholders and common stockholders (in addition to Rosangela Buzanelli Torres, chosen by the workers).

This off-season board selection meeting is the fruit of this year’s controversial election. The documents used for the regular meeting provoked controversy. The combination of company manuals and voting instructions by agencies providing services to foreigners ended up inducing an error in the distribution of votes. The practical result was the election of only one new member selected by minority shareholders to the board, when there was a chance for two names to be won.