Luxembourg-based steelmaker Ternium said on Tuesday it lost a court case to have the former chief executive of Usiminas Julian Eguren reinstalled at the helm of the Brazilian company.
Ternium had argued that the dismissal of Eguren went against a controlling shareholder agreement that the hiring and firing of Usiminas’ CEO be done via consensus.
Eguren was dismissed on accusations of “inappropriate receipts of money” in a boardroom vote split between top shareholders Ternium and Japan’s Nippon Steel & Sumitomo Metal Corp. Chairman Paulo Penido, a Nippon representative, broke the deadlock with a deciding vote.
Ternium said it maintains its view that Nippon broke the shareholder agreement. Nippon has previously said it believes it took a legal and appropriate process to fire Eguren.