Brazil: Batista banned from managing companies

11 November 2015, News Wires – Brazil’s securities regulator CVM has banned tycoon Eike Batista from holding any administrative or board of director post at a publicly traded company for five years, according to reports.

Eike Batista new

Eike Batista

The CVM made the decision because it found that Batista violated a Brazilian law that prohibits senior executives from casting votes at shareholders meetings on resolutions to approve company accounts prepared under their administration, Reuters reported.

It said that while chief executive and chairman of the board of directors of OGX Petroleo e Gas Participacoes, he used his own stock in OGX, owned through his personal holding companies Centennial Mining and Centennial Equity, to approve the 2013 financial statements of OGX at a shareholders meeting.

OGX is now known as Oleo e Gas Participacoes.

At the time of the votes Centennial Mining owned 47% of OGX and Centennial Equity owned 3.58%.

OGX was the subject of Latin America’s largest ever bankruptcy protection filing in October 2013, a situation that led to the collapse of Batista’s EBX mining, energy, shipbuilding, port operation and transportation group.

Batista, once Brazil’s richest man, saw his more than $30 billion fortune evaporate as a result and the shares of his companies shrink to nearly zero.

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