AGU and Eletrobras ask the STF for another 90 days to discuss an agreement on participation in the company

The Federal Attorney General’s Office (AGU) and Eletrobras asked the Federal Supreme Court (STF) for another 90 days to discuss the Union’s voting power in the company after privatization.

The request, signed together, was sent on Tuesday (17) to the case’s rapporteur at the STF, minister Nunes Marques.

The magistrate took the issue to be discussed in a mediation group that seeks to reach a conciliation between the government and Eletrobras.

The negotiation is being conducted by the Federal Public Administration Mediation and Conciliation Chamber.

At the beginning of August, . A first concession of extra time had been given by the minister in April.

“Complexity”

In the new request, AGU and Eletrobras stated that they remain “committed” to the adjustments to reach a consensus. “However, given the sensitivity of the issues involved, in addition to the existence of technical and complex issues, the negotiations have not yet reached a conclusion.”

According to the parties, more time is needed for in-depth discussions, given the “inherent complexity of the case”.

“This is because it is not enough to simply reach a superficial consensus; It is imperative that all issues, even the most technical and controversial, are carefully examined and discussed, and delimited in the agreement to be subsequently delivered to this Supreme Court”, they stated.

AGU and Eletrobras also stated that this “rigorous” approach is “crucial” to guarantee legal certainty, avoiding “future disputes or legal uncertainties”.

“Furthermore, by addressing all issues comprehensively and definitively, the conciliation that is intended to be achieved soon will be more robust, providing not only immediate resolution of the conflict, but also a sense of stability and confidence for all parties involved, favoring an environment of greater predictability and security in legal relationships”, informs the request.

Action

The action on the matter was presented to the STF by President Luiz Inácio Lula da Silva (PT). It deals with the Federal Government’s challenge to the law that privatized the company, reducing the State’s voting power in the company. The Union has voting power of just 10%, even though it owns 42% of the common shares of the former state-owned company.

The discussion of the case was forwarded, by Nunes Marques, to an attempt at conciliation in December 2023. In April of this year,

The privatization of Eletrobras was completed in June 2022 under the government of then president Jair Bolsonaro (PL).