The Board of the Securities and Exchange Commission (CVM) rejected a proposal for a Term of Commitment in which brothers Joesley Mendonça Batista and Wesley Mendonça Batista, from the JBS meatpacking plant, offered R$ 3 million each to end a sanctioning administrative process.
By rejecting the agreement totaling R$ 6 million, the CVM directors contradicted the opinion of the Commitment Term Committee, which suggested acceptance of the proposal.
In the lawsuit in question, the Batista brothers are accused of “abuse of the right to vote, for voting, indirectly, in the approval of their own accounts”. The accusation originated in a complaint sent to the CVM. Abuse of voting rights allegedly took place at JBS’s Annual and Extraordinary General Meeting of April 28, 2017. The complaint reached the CVM in June of that year.
According to the opinion of the Term of Commitment Committee, in the sanctioning process, the technical area of the CVM proposed “the responsibility of Wesley Batista, as shareholder, vice-chairman of the Board of Directors and CEO of the company, and Joesley Batista, in the as a shareholder and chairman of the Company’s Board of Directors, due to non-compliance, in theory, with the provisions of article 115 1 of Law No. 6,404/76, by indirectly voting for the approval of their own accounts”.
Also according to the opinion, the Batista brothers made the proposal, according to the CVM, after being subpoenaed in the administrative process. Initially, they offered R$ 1.5 million each to close the case. The Term of Commitment Committee negotiated with the businessmen and proposed increasing the value to double. In a meeting on February 3 this year, the executives accepted the increase in value, totaling R$ 6 million.