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Eletrobras, Brazil's largest utility, announces government nominations for a post-privatization overhaul of the board

Eletrobras, Brazil's largest utility, announces government nominations for a post-privatization overhaul of the board

The company confirmed that the Brazilian government had nominated the former Mines and Energy Ministers Silas Rondeau and Nelson Hubner as well as Mauricio tolmasquim as candidates for the board of Eletrobras.

The announcement of the nominations came after Eletrobras and Brazil's Government signed an official agreement to settle a legal dispute over voting rights in the company. Shareholders have yet to approve the deal.

Eletrobras is nearing the end of its turnaround after privatization in 2022. The board election on April 29 will be the first major restructure since that time.

The Brazilian government will be able to nominate up to three board members under the new agreement. Since privatization, it has not had a seat on the board, despite owning 46% of voting rights.

Rondeau and Hubner served as Mines and Energy Ministers in the previous government of President Luiz-Inacio Lula da So. Tolmasquim held several positions within the ministry and is currently a director for Petrobras.

Eletrobras Chief Executive Ivan Monteiro is among the board members who have resigned, but he will continue to serve in his executive position.

Eletrobras confirmed that the former Finance Minister Guido Mantega was nominated by the government to be its fiscal council. (Reporting and writing by Leticia Furcuchima, Editing by Sarah Morland).

(source: Reuters)