Nippon Steel asks court to annul election of Usiminas’ new CEO

Monday, 03 April 2017 00:02:53 (GMT+3)   |   Sao Paulo
       

Nippon Steel, a major shareholder at Brazilian flats steelmaker Usiminas, filed an injunction at a Minas Gerais state court in an attempt to annul a decision that replaced a Nippon-supported CEO for a Ternium-appointed executive.
Last month, CEO Romel de Souza was replaced by a Ternium-supported executive, Sergio Leite, who was in turn replaced by de Souza in October 2016.
 
Nippon Steel argued that the votes ousting de Souza during a board meeting in March were illegal, against the steelmaker’s bylaws, and they did not respect former decisions by other Brazilian courts. Nippon Steel said de Souza did not commit any irregular duties to justify being replaced.
 
The legal disputes involving opposing shareholders Nippon Steel and Ternium are expected to continue, as chances for the two companies to call a truce have diminished following multiple lawsuits.

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