Minority shareholders fail to elect members to OGX’s Board of Directors

Print Friendly, PDF & Email

The group of minority shareholders led by the investor William Magalhães has not managed to reach its objective of electing directors to sit on OGX’s Board of Directors and Conselho Fiscal (“Audit Committee”). Willian Magalhães, the minority shareholders’ candidate, has not been elected. The Shareholders’ Meeting, which started one hour later than expected, was called to vote on new directors after that the former ministries Pedro Malan (Minister of Finance), Rodolpho Tourinho Neto (Minister of Mines and Energy), and Ellen Gracie (Associate Justice of the Supreme Court from 2000 to 2011) left their positions in the company’s Board of Directors. At that time, the company did not informed of the reason for their decision to leave the Board.
According to Willian Magalhães, this event demonstrates the need of shareholders to further organize themselves to attain their objective. “For the next Shareholders’ Meeting, we will be more united and advanced to have the support of foreign and domestic funds, after all, the participation of minority shareholders in the company’s Board of Directors is of utmost importance.” Although Magalhães counted on the support of some funds, they were neither present nor represented in the Special Shareholders’ Meeting.
The meeting was attended by some foreign funds by means of their legal representatives and by approximately 40 minority shareholders.
After the closing of the meeting, minority shareholders met with OGX’s CEO, Mr. Luiz Carneiro, and with the foreign funds’ legal representatives.
Further to that, the company decided not to pay interests on its foreign bonds and has been considering the adoption of judicial recovery.