A Brazilian court in the state of Minas Gerais has denied an injunction filed earlier in April by shareholder Nippon Steel to annul the appointment of Sergio Leite as the CEO of flats steelmaker Usiminas, the Brazilian steel producer said on Tuesday.
According to a securities exchange commission filing, a Minas Gerais state court denied the request of Nippon Steel, which opposed the nomination of Leite as the company’s CEO.
Nippon Steel supports former CEO Romel de Souza, who Leite was voted to replace in a board meeting in March; just months before, in October 2016, de Souza had replaced Leite as CEO.
Nippon Steel argued the votes that ousted de Souza during a board meeting in March were illegal and against Usiminas bylaws. They also did not allegedly respect former decisions by other Brazilian courts.
Despite the ongoing legal fights involving Nippon Steel and Ternium, Usiminas managed to reach a net profit of BRL 108 million in Q1 this year.