Petrobras Announce Suspension from the Brazilian Institute of Corporate Governance – IBGC
Petrobras informs that received a mail from the Brazilian Institute of Corporate Governance – IBGC communicating that its Board of Directors decided to suspend Petrobras from its members for a period of 12 months, as follows:
“Such sanction does not imply a permanent exclusion from members. It is a suspension for further reassessment, which aims to grant a necessary time for the Company to transform the efforts already accomplished in a set of practices, which will be able to ensure strength, efficiency and resilience of the governance format effectively practiced in the Company and not only indicated in its documents.”
“Whereas, its Board of Directors – BD, acknowledges the efforts made by the Company in order to improve its governance practices, especially the implementation of a Conformity, Risk and Governance Executive Board and evident efforts regarding the investigation of facts related to information on the Car Wash (“Lava Jato”) Case, with implementation of a Support Committee to the Board, hiring specialized advisors and adoption of collaborative attitude with the Authorities. The IBGC Board also followed with great interest and understood the new composition of the Company´s Board of Directors as a positive attitude. Such Board of Directors was elected in the last annual meeting of shareholders.”
“However, such measures, especially those related to governance practices, were installed only recently and we are not sure that it will be effective and sustainable over time. Simultaneously, there are no evidences that the Company has adopted substantial and effective mechanisms to monitor the ethical conduct pattern set out in its practices and that it maintains constant independent and supervised control over such mechanisms through its Board of Directors. It is also unknown how the Company will handle with possible conflict of interests involving the controlling shareholder.”
Petrobras reaffirms its best efforts to improve its governance and management pattern, as acknowledged by IBGC.