RIO DE JANEIRO, April 15 (Reuters) - A Brazilian court on Wednesday overturned the election of two members to the board of steelmaker Usiminas, after one of the company’s main shareholders argued the elections did not follow correct corporate procedure.
A copy of the judgment on the court’s website said the decision applies to the election of two minority shareholder candidates: billionaire investor Lirio Parisotto and Mauro Rodrigues da Cunha, who heads an industry group for minority investors known as AMEC.
The court decision is another twist in the power struggle for control of the Brazilian steelmaker, formally known as Usinas Siderurgicas de Minas Gerais SA.
The company is controlled by main shareholders Luxembourg-based Ternium SA, which took the election of the two board members to court, and Japan’s Nippon Steel & Sumitomo Metal Corp.
The two control Usiminas through a shareholder accord but have been at loggerheads for six months over the departure of the steelmaker’s former chief executive officer, leading to a number of court cases and appeals to the regulator.
In a separate issue, Brazil’s securities regulator said on Tuesday Nippon and Ternium would have to extend a partial tender offer to minority shareholders. (Reporting by Stephen Eisenhammer; Editing by Lisa Shumaker)