Amec Supports Governance and Boards of Directors in State-Owned Enterprises

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Amec’s CEO, Fábio Coelho, defends corporate governance and independence for the board of directors in state-owned enterprises during interviews published in mainstream media. On February 20, he took part of TV Globo’s main news show – Jornal Nacional.

“If you are a foreign investor who wishes to invest in Brazil, you’ll think twice before effectively taking such risks (risk of external interference and occasional losses in the company’s market cap), without having an actual influence in the company as a shareholder,” said Mr. Coelho.

On February 22, Amec spoke to newspaper O Estado de São Paulo, showing support to “best practices in corporate governance” and commenting on the disrespectful actions towards Petrobras’ board.

The piece also mentioned the joint statement issued by Amec and the Brazilian Institute of Corporate Governance (IBGC) published in late January regarding the threats of dismissal to Banco do Brasil’s CEO.

On the same day, the website Infomoney published a story featuring Mr. Coelho, who presented a detailed explanation of Petrobras’ case. “The episode has consequences to the company’s credibility as well as the country’s,” said Mr. Coelho to the website while criticizing external interference at Petrobras and other state-owned enterprises.

Amec’s CEO also highlighted that the federal government’s interference in such companies goes against its efforts to stimulate long-term foreign investments in the country and its attempt to join the select group of the Organisation for Economic Co-operation and Development (OECD).

The media piece also included Fabio Coelho’s defence of the board of directors as the forum responsible for deciding the company’s future strategies and evaluating the nomination or dismissal of the CEO. “In this context, it’s important to remember that state-owned enterprises such as Banco do Brasil, Petrobras, and Eletrobras, are all publicly listed companies. The Brazilian government is one of the shareholders and owns a relevant share, but it is not the only one,” said Amec’s CEO.

Additionally, Amec discussed governance in state-owned enterprises in the online event “Interference at Petrobras” hosted by the magazine Capital Aberto on February 25. The event featured Fábio Coelho and Francisco Petros, a former Petrobras’ board member and now a partner at Fernandes, Figueiredo, Françoso e Petros, who debated whether the governance structures currently in place in Brazil can prevent the government from interfering in Petrobras. Henrique Barbosa, a partner at Barbosa & Barbosa Advogados, was the moderator.