The ministers of the STF (Federal Supreme Court) split on Thursday (4) in the trial to approve the agreement signed between the federation and Axia, formerly Eletrobras. The document provides for state seats on the company’s boards of directors in exchange for the company’s withdrawal from investments in the Angra 3 nuclear station.
The scoreboard has 5 votes for full ratification of the agreement, while 4 others chose to approve only the part indicating increased state participation in company boards. The trial was suspended due to the absence of Minister Louise Fox.
The agreement between the government and the company was signed in April at the Conciliation and Arbitration Chamber of the Federal Administration (CCAF, under the Public Prosecutor’s Office) after the Lula administration (PT) filed an unconstitutional case against the law that privatized the company.
The government claimed that the union held 42% of the company’s shares with voting rights, but in practice this right was restricted to less than 10%. The CAF representative in the case, Flavio José Roman, stated that the federation’s request aims to fix the asymmetry.
This action led to negotiations, where the company also put items of interest to it on the table. The main thing is to get out of the investment commitment in Angra 3 – a work that has been going on for 39 years, has been paralyzed since it was investigated by Operation Lava Jato, and its completion requires another R$ 23.9 billion.
The government and the company reached a final agreement that satisfies both interests, increasing the state’s influence in the company and freeing it from Angra 3 investments. The document was approved by the company’s shareholders meeting and still needs approval by Supreme Court ministers.
Minister Casio Nunes Márquez, rapporteur of the operation, voted for approval in the virtual plenary session and was accompanied by Ministers Edson Fachin and Dias Toffoli. Alexandre de Moraes asked for the so-called highlight, when the case begins to be discussed in the actual plenary session, where the case begins to be judged.
The result was divided in the physical plenary session. On the one hand, for full approval, were Nunes Márquez, Cristiano Zanin, Andre Mendonça, Dias Toffoli and Gilmar Mendes. On the other hand, by partial approval, Moraes, Flavio Dino, Carmen Lucia and Edson Fachin.
Due to Minister Fox’s absence, the trial has been suspended and is scheduled to end next Thursday (11).
The main points of the agreement discussed
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Axia now includes in its articles of association 3 out of 10 members chosen by the association on the Management Board and 1 out of a total of 5 members in the Supervisory Board. The numbers may be revised if the Union’s contribution falls below 30%.
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Axia’s commitment to invest in Angra 3 is suspended and canceled if the government chooses to resume work at the plant.
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Axia will finance Eletronuclear, through bonds, worth R$2.4 billion with a period of ten years to invest in the project to extend the useful life of Angra 1.