Brazil’s Eletrobras, Government Sign Agreement to End Lawsuit Over Voting Power

Wedoany.com Report-Mar 27, Brazilian power company Eletrobras has signed an agreement with the nation's government to end a legal dispute over government voting power in the company, it said in a filing on Wednesday.

The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 9, 2019.

The two parties had been trying to reach an agreement since 2023 as the government of President Luiz Inacio Lula da Silva pushed to regain influence in Eletrobras more equivalent to its stake in the firm, which was privatized in 2022.

Under the fresh agreement, which still lacks shareholder approval, the government would nominate three of Eletrobras' 10 board members. Currently, the government holds no seat on the board.

The deal, the initial terms of which were disclosed earlier this year, also frees Eletrobras from previously planned investments in the controversial Angra 3 nuclear plant.