The Brazilian securities exchange commission, CVM, said the election of Usiminas’ new CEO, Sergio Leite, was legitimate, according to a document filing made available by the flats producer this week.
CVM said that in light of the country’s enterprise laws, and considering the documents sent by Nippon Steel, the shareholder opposing the election of Leite, the votes that ousted Romel de Souza from the CEO seat did not infringe any laws.
“At first, [board members] have exercised their votes in an informed and founded way, independently of [any] orientations from the shareholders that elected them [as board members,] including the board president, who counted such votes,” the market regulator said.
CVM’s response follows a request from Nippon Steel, which questioned the election of Sergio Leite as the company’s CEO. Leite replaced Nippon Steel-supported executive, Romel de Souza, in March this year, who in turn replaced Leite in October 2016.