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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

 

 

 

 

 

 

 

 

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”.

2. Such statement should be made via Sistema Empresa.NET, category: Comunicado ao Mercado (Market Announcement), type: Esclarecimentos sobre Consultas CVM/BOVESPA (Clarification regarding CVM/BOVESPA Consultations), including a transcript of this official letter.
3. We draw your attention to the fact that by order of the Superintendence of Business Relations, using the powers legally vested in them, and based on item II, article 9, of Act 6,385/76, and CVM Instruction No. 452/07, a punitive fine of R$ 1,000.00 (one thousand Brazilian reais) shall apply without prejudice to other administrative sanctions for non-compliance within 1 (one) business day from receipt of this official letter, submitted to the electronic address of the investor relations on this date.

Sincerely,”

 

                                                                                                                                                                  

                                                                                               

 

 

 

 

 

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:	/S/ Armando Casado de Araujo
	Armando Casado de Araujo Chief Financial and Investor Relation Officer