Below is a news update on the JBS situation in Brazil.
By Anna Flávia Rochas on 7/27/2017
JBS S.A. has called a shareholders meeting for Sept. 1 to evaluate the future of the company’s management, after members of the family controlling the meat processor revealed in May their participation in a corruption scandal.
JBS shareholder BNDESPar, the investment arm of Brazil’s National Economic and Social Development Bank (BNDES), had been requesting the meeting at least since June, when BNDES President Paulo Rabello de Castro publicly defended the removal of the Batista family from JBS’ command.
According to the notice for the board meeting filed with Brazil’s securities regulator CVM on Wednesday night, the meeting will address a request by BNDESPar to discuss and decide on “measures to be taken by the company for the defense of its rights and interests, including the responsibilities for losses caused to the company by its managers, former managers and controllers involved in the illicit acts confessed in plea bargain deals and other agreements.”
JBS management also intends to present the measures being adopted to ensure best practices of corporate governance, compliance and protection of the company’s interests, among other subjects to be discussed.
Brothers Wesley and Joesley Batista, the current global CEO and former chairman of JBS’ board of directors, respectively, are among executives who have signed plea bargain deals with federal prosecutors to disclose details of the corruption scheme in which they participated.