RIO DE JANEIRO, Nov 10 (Reuters) - Brazilian tycoon Eike Batista has been banned for five years from holding any administrative or board of director post at a publicly traded company, Brazil’s securities regulator CVM ruled on Tuesday.
The CVM made the decision because it found that Batista violated a Brazilian law that prohibts senior executives from casting votes at shareholders meetings on resolutions to approve company accounts prepared under their administration.
It said that while chief executive and chairman of the board of directors of OGX Petroleo e Gas Participações SA, he used his own stock in OGX, owned through his personal holding companies Centennial Mining and Centennial Equity, to approve the 2013 financial statements of OGX at a shareholders meeting.
OGX is now known as Oleo e Gas Participações SA.
At the time of the votes Centennial Mining owned 47 percent of OGX and Centennial Equity owned 3.58 percent.
OGX was the subject of Latin America’s largest ever bankruptcy protection filing in October 2013, a situation that led to the collapse of Batista’s EBX mining, energy, shipbuilding, port operation and transportation group.
Batista, once Brazil’s richest man, saw his more than $30 billion fortune evaporate as a result and the shares of his companies shrink to nearly zero.
Reporting by Juliana Schincariol; Writing by Jeb Blount; Editing by David Gregorio