BB Seguridade to enter governance program

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Friday, September 1, 2017

The board of Brazilian pension and insurance company BB Seguridade Participações approved the company entering into a high standard of governance program for state run companies, through local stock exchange B3.

The program, launched by the exchange two years ago in the wake of Lava Jato scandal, provides certification for government-controlled companies that commit to obeying rules for board composition, board creation, and document disclosure in an effort to restore investor confidence in state governance. Executives will be limited to prevent conflicts of interest and undue influence.

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The company, which is controlled by state run Banco do Brasil, still needs to be approved for the program by the exchange operator.

One of the main changes expected for BB Seguridade, will take place in company's board. Currently, the company has six board members, with one of them independent; now, with the approval by the shareholders of statutory changes, the company's board will have seven directors, with two independents.

Banco do Brasil and state run oil company Petrobras already are part of the program.