Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
MARKET ANNOUNCEMENT |
CENTRAIS ELETRICAS BRASILEIRAS S/A
CNPJ: 00.001.180/0001-26
PUBLICLY-HELD COMPANY
Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) hereby informs its shareholders and the market in general that on March 15, 2017 the company received Official Letter No. 128/2017/CVM/SEP/GEA-1 of Comissão de Valores Mobiliários ("CVM"), as transcribed at the end of this annoucement, requesting clarification regarding the news entitled “Eletrobras considers ‘inappropriate’ government appointments for two boards” published by the newspaper O Globo on February 21, 2017.
In compliance with the aforementioned Official Letter, the Company clarifies:
1. Itaipu Binacional follows a special regulation provided for by the Itaipu Binacional Treaty executed on April 26, 1973, and enacted by decree 72,707, of August 28, 1973;
2. Such special regime, when appointing members to the Board of Itaipu Binacional, Eletrobras observes its governance rules, which are governed by Act 13,303/2016 (“Government-controlled companies Act”) and Decree 8,945/2016, which regulates such act;
3. In exercising its authority provided for by art. 12, paragraph 2, of Annex “A” of the Itaipu Binacional Treaty, Eletrobras, through its Board of Directors, proposed, among the six (6) candidates, the names of Mr. Luiz Fernando Leone Vianna, Mr. Marcos Antônio Baumgartner, Mr. Ramiro Wahrhafting and Mr. Cesar Eduardo Ziliotto, for the positions of Brazil General Officer, Administrative Officer, Coordination Officer and Legal Officer, respectively. The others candidates were not recommended by the Board of Directors;
4. At the end of the process, the Brazilian government, pursuant to Diplomatic Note 439, of December 20, 1993 from the Brazilian Government to the Paraguayan Government, is responsible for appointment of candidates to compose the Board of Itaipu.
Rio de Janeiro, March 16, 2017.
Armando Casado de Araujo
Financial and Investor Relations Officer
MARKET ANNOUNCEMENT |
Transcript of Official Letter 128/2017/CVM/SEP/GEA-1
“Subject: Request for additional clarification
Dear Sir,
I refer to the Market Announcement disclosed by the Company trhough sistema Empresas.net, on Feb. 23, 2017 in response to Official Letter No. 101/2017/CVM/SEP/GEA-1, in which CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS informs that it “pursuant to art. 12, paragraph 2, of Annex “A” of the Itaipu Binacional Treaty, the company is responsible for appointing members to the Executive Board of Itaipu Binacional. The selection and approval of candidates for said positions are done in accordance with company’s governance rules.”
1. Considering the Company did not respond to our request, and considering the considerations made are the primary focus of these news – not its authority regarding the appointment of members, we hereby request the following clarification: “the jury of executives considered inappropriate, from the technical point of view, the names appointed by the political base of the government for two key boards: financial and technical”.
Sincerely,”
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
By: |
/S/ Armando Casado de Araujo
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Armando Casado de Araujo
Chief Financial and Investor Relation Officer |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.