Amec compliments CVM on its timely decision about the impediment to vote

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In the beginning of the month, the Association of Capital Market Investors – Amec – sent a letter to the Brazilian Securities and Exchange Commission – CVM – complimenting the regulator on its decision to bar a situation of conflict of interest by the controlling shareholder. The association also requested that the CVM continues to adopt a proactive posture so that abusive situations are “aborted” before they are made concrete.
The vote cast in conflicts of interest – primarily by the controlling shareholder – is a recurring tool that imposes losses to the investors,” says Amec’s letter. “It cannot be allowed that one makes use of his/her voting power at the expense of the remaining shareholders”.
In the letter sent to the CVM, Amec also points out that, when the controlling shareholder is banned from voting, minority shareholders have even more responsibility and must act in the company’s best interest.
“Minority shareholders are not used to taking decisions. When the controlling shareholder is in a conflict situation, the minority shareholders must be aware of the situation and vote in favor of the company,” stated Amec’s CEO, Mauro Rodrigues da Cunha, in his interview. “Any decision that brings losses to the company cannot go unpunished”.
After CVM’s decision and Amec’s letter, EMAE removed a proposal that the regulator had considered as a conflict of interest with the controlling shareholder from its agenda.
Click here to access the President Letter 07/2017 – Impediment to vote.