JBS shareholders were to hold a special meeting on September 1 in which the fate of CEO Wesley Batista would be discussed, but a Brazilian court has ordered that meeting to be suspended for 15 days.
Batista’s future with the company had been in question and that issue was to be addressed at the meeting as the company seeks to repair its image after a scandal in which Batista and his brother, Joesley Batista had admitted to bribing Brazilian politicians. Joesley Batista had been chairman of JBS, but he stepped down after the scandal became known. He was replaced by Tarek Farahat.
Wesley Batista has also since stepped down from the Pilgrim’s Pride board.
JBS, on its website, posted a material fact on August 28, stating that the majority of the board’s members did not favor having Batista’s tenure as CEO come to an end. The company stated there are concrete reasons to conclude that the removal of Mr. Batista, as a consequence of a responsibility action against him, would be premature, and therefore damaging to JBS, particularly to the company’s economic and financial stability and its capacity to commercially thrive. Therefore, the majority of JBS’ Board of Directors are in favor of maintain Mr. Wesley Batista as the company’s CEO.”
Brazil court suspends JBS shareholder meeting on CEO’s fate -document
SAO PAULO, Sept 1 (Reuters) - A shareholder meeting to decide the fate of JBS SA Chief Executive Wesley Batista was suspended on Friday after his family, which controls the world’s largest meatpacker, won a legal injunction, according to a court document reviewed by Reuters.