IBGC repudiates tactics that can reopen the doors of state-owned enterprises for politicians

Print Friendly, PDF & Email

The Brazilian Institute of Corporate Governance – IBGC – voiced its opinion against the recent congressional attempt to eliminate the partisan political “shielding” provided for in the Law 13,303/2016 (the Corporate Law). The congressmen took advantage of the debate over the Law 6.621/2016, which provides for a new regulatory framework for regulation agencies, to include an amendment that eliminates, from the Corporate Law, the ban on the participation of authorities that were active – with decision making power – in politics or electoral campaigns in the previous three years in SOEs.
In IBGC’s opinion, the ban on the participation of politicians is one of the major advancements of the SOEs Law that, despite being in force since 2016, started to be fully applied only from July 1 on, when the deadline to adjust to the new rules ended. The institute classified the measure, now under analysis in the Senate after the end of the Congress recess, as a “hard blow against the independence and public interests that must guide the work conducted by these organizations” and urged the National Congress to prevent this attempt from being approved.
IBGC’s statement may be found here.