June 1, 2018 – The ASSOCIATION OF CAPITAL MARKET INVESTORS – Amec – hereby informs the capital market’s participants that is Management Board, under the terms of the Article 19 of its Bylaws, approved the publishing of this notice to the market.
- We have been following the news affecting Petrobras in the past days with great concern, especially the resignation of its CEO, Pedro Parente. Under his leadership and with the support of its Board of Directors, Management Board and the company’s governance boards, Petrobras has rapidly evolved in governance terms, getting rid of the problems that have been affecting it for a long time. This legacy has been incorporated into the company and Brazil and must be preserved.
- Accordingly, the measures to be taken in the next hours and days are crucial. Firstly, the selection of Petrobras’ future CEO must follow the governance standards that have been created.
- With respect to the pricing policy, Amec reiterates its long-established position: Petrobras’ directors have fiduciary duties with the company, what means that fuel subsidized prices are not among the public interests that led to its creation. On the contrary: selling by-products below costs is against not only the Corporate Law (Law 6,404/76, Articles 153 to 155), but also against the Oil Law (Law 9,478/97, Article 61, Paragraph 1), and the Law of the Administrative Council for Economic Defense – CADE (Law 12,529/11, Article 36, Paragraph 3, Subparagraph XV), among others.
Petrobras is one of the most important listed companies in Brazil. Amec understands that the non-compliance with the laws and good corporate governance practices puts the company’s sustainability and the Brazilian capital market’s credibility before investors from across the world into risk, hindering the economic recovery the country has been pursuing.