Proxy Blog

BRF S.A. 

October 30, 2018

BRF S.A., a Brazilian food company, provided a special proxy. This proxy had six board proposals to change company bylaws. The changes are required based on Novo Mercado regulations and the Brazilian Code of Corporate Governance. Brazil appears to be requiring better corporate governance of publicly-held companies. 

Magni voted for all of the proposals. The changes are extensive. To the company’s credit it supplied the document detailing every change with a color-coding system so the shareholder could understand the reason for the change. The changes do appear to strengthen governance, though even if the changes are accepted, the governance of BRF S.A. appears low when compared to US counterparts. Magni will generally vote in favor of better governance, even if the change still leaves the company with less than desired governance.