Special shareholder meetings held by Brasil Telecom Participações (BTP) and Brasil Telecom SA (BrT) on Monday, September 8 in Brasília strictly obeyed recommendations from Comissão de Valores Mobiliários, the securities regulator, by approving only the introductory clauses of new provisions in their respective articles of association. According to the CVM, recognizing the argument presented by Previ, the remaining paragraphs of the new items weren?t in accordance with company law. The articles as now amended ban directors of companies that could be deemed competitors from being elected to the boards of BTP and BrT. They also ban such election when conflicts of interest may occur.
According to a source close to the pension funds, the amendments won?t have a material impact on management of either company because they merely follow rules laid down in company law and the General Telecommunications Act.
The CVM said the non-approved amendments, which were proposed by Opportunity, were illegal because they would have prevented board members from voting freely or company shares from circulating.