Privy's decision to request multiple votes at BRF shareholder meeting surprises

Previ, a retirement fund for Banco do Brasil employees (BAAS3), which owns 6.13% of the capital of BRF (BRFS3), informed Thursday (24) that he decided to request the adoption of multiple ballots to elect the members of the company’s board of directors, which will be held next Monday (28).

The decision surprised other BRF shareholders for two reasons. First, because some of them have already voted, as the deadline for remote voting expires this week. BRF is expected to publish a preview of the voting results tomorrow.

Additionally, through its equity participation and the support of other minority shareholders, Previ will be able to appoint one in ten directors. What will change in practice? ‘ asks a shareholder.

Marfrig is the largest shareholder in BRF

Today, Marfrig is the largest shareholder in BRF, with 33.25% of the capital. in february, The meatpacker referenced a list for the BRF board, which included Marcos Molina, founder of Marfrig, and Sergio Real, former CEO of Santander Brasil. And the current president of the bank, and Marcia Marcel dos Santos, Molina’s wife, among seven other names.

Multiple voting allows shareholders to vote individually for each candidate for the Board of Directors.

According to the information received from ResetPrivy will nominate a candidate for election, economist Igor Barenboim, who was in charge of the treasury in Itaş and held government positions.

The appointment would be a means of “trying to stop Molina’s dominance”.

“One of the problems with the BRF (currently) is precisely this fragmented board, with members defending the interests of different shareholders and not always looking at the whole. A union would be positive for the company,” says one shareholder.

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In a note, Privy said, “We believe the board of directors should reflect, at its best, the company’s shareholder base.”

The purpose of the multiple voting, according to the fund, is “to build a strong, diverse and legitimate community to develop the strategies necessary to generate value for all shareholders, employees, suppliers, customers and communities, i.e. the general community format.”

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