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Brazil's Petrobras board supports rules for political appointments

Published 10/23/2023, 02:06 PM
Updated 10/23/2023, 06:26 PM
© Reuters. FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes
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By Marta Nogueira

RIO DE JANEIRO (Reuters) -Brazilian state-run oil company Petrobras said on Monday that its board voted to change its bylaws, and two people with knowledge of the matter said the move would pave the way for politicians to occupy top positions at the company.

The change, which is subject to shareholder approval, would reverse 2016 rules adopted when Brazil passed a law to curb political appointments at state firms following a huge corruption probe centered around Petrobras.

Brazil's Supreme Court has yet to rule on that law's constitutionality, but an injunction issued by one of the court's judges in March lifted a restriction on the appointment of politicians who recently held office to positions as directors or board members.

In a statement on Monday, Petrobras told investors the bylaw change seeks to address the injunction, and that the firm will only restrict appointments if a law expressly calls for it.

Petrobras shares closed more than 6% lower on Monday in Sao Paulo.

© Reuters. FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes

One of the sources, who spoke on condition of anonymity, said the change would allow politicians to participate in the "day-to-day running of the company."

After markets closed, Petrobras issued a second statement, saying the change is "simply to keep Petrobras' bylaws updated."

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