NSSMC to seek legal remedy to annul Usiminas ceo removal

Nippon Steel & Sumitomo Metal Corp (NSSMC) will take “all necessary legal measures” to annul the board of directors’ removal of ceo Rômel Erwin de Souza from his position at Brazilian steelmaker Usiminas, it said on Friday March 24.

“NSSMC believes that the March 23 resolution was made in clear violation of the [Usiminas] shareholders’ agreement and without any legitimate reason, and therefore is invalid,” the Japanese company added.
NSSMC and Latin American steel group Ternium are the major shareholders in Usiminas.
Seven members of the board voted on Thursday to remove Souza, alleging that he violated Usiminas’ own rules on compliance when signing a memorandum with Japanese steelmaker Sumitomo regarding their iron ore joint venture, Mineração Usiminas, without the required joint signature of two other directors.

Only four members voted against Souza’s dismissal....

Published

Ana Paula Camargo

March 24, 2017

19:28 GMT

São Paulo