At a floor session on Tuesday (June 21), the Brazilian Senate approved a new, stricter drafting of a bill to introduce new rules for the appointment of executive officers and members of the board of directors of state-controlled enterprises. The Chamber of Deputies had amended the original draft to make some of the rules more lenient, but the Senate rejected many of the amendments.
The approved draft is now pending presidential sanction. The bill sets forth that the appointment of executive officers, members of the board of directors and chief executives must be based on technical qualifications and staff employees should take priority.
Moreover, the appointees to the board of directors and executive board will be required to have at least ten years' experience in the industry or have held top- or second-rank positions at similar-sized organizations for at least four years. The same will apply to teachers or researchers in the organization's field of activity and professionals that have held held special advisory roles in the public sector.
The Senate has reintroduced a 36-month exclusion period for the appointment of members of the board and executive officers who have been in the decision-making ranks of political parties or election campaign organization.
Also according to the bill, all state-controlled enterprises listed on a stock exchange are required to trade at least 25% of its stock in the market within ten years. The requirement will apply to all federation, state, municipal, or district-controlled corporations.
The bill covers government-controlled companies doing business activities, such as Banco do Brasil; those providing public service, including the National Food Supply Company (CONAB), and those operating business activities subject to state monopoly, like Casa da Moeda (the Mint), for example.
Interim President Michel Temer had set the approval of the bill as a priority. Earlier this month, he put any appointments to boards of directors and chief executives of state-controlled enterprises and pension funds on hold until the bill was passed.
Translated by Mayra Borges
Fonte: Agência Brasil.