The Batista brothers are back; Opposition to listing on the NYSE has not disappeared

– OPINION –

USDA’s Quarterly Enforcement Report of all its current legal actions will sometimes report that inspection services are denied because an applicant has been convicted of a minor crime.

When the USDA Food Safety and Inspection Service does not inspect a meat or poultry company, those products are not considered human food and the company is out of business.

A sole proprietorship or a few partners will most likely have to deal with this type of policy, which is mainly seen when it comes to the little guy; Companies owned by thousands of shareholders are treated differently.

Let’s take a look at the Batista brothers, Joesley and Wesley. Both left the board of directors of JBS, SA in 2018 after being linked to the alleged bribery of nearly 2,000 government officials.

In May 2017, Brazilian President Michel Temer discussed hush-money payouts going to former Speaker of the House of Representatives Eduardo Cunha in secretly recorded recordings leaked by a leading Brazilian newspaper.

Temer was under immediate pressure to resign but had enough votes in Congress to escape an impeachment vote. The Batista brothers were forced to leave their executive positions at JBS and faced charges that included everything from prison time to record fines.

It wasn’t until last year that they were acquitted of insider trading and re-elected to the JBS board. Their return to the Board of Directors and the fact that JBS is pursuing a dual listing on the New York Stock Exchange have put the Batista brothers in the spotlight.

An interest group has emerged calling itself “Ban the Batistas” and opposing what it calls “the unchecked power grab by the majority shareholders, brothers Joesley and Wesley Batistas.”

“JBS SA, the world’s largest meat producer, and its owners, the infamous Batista Brothers of Brazil, plan to list their shares on the New York Stock Exchange. This IPO must be stopped,” said Ban the Batistas. “Giving JBS access to the U.S. stock market enables and rewards the corrupt, dangerous and criminal conduct of the Batista brothers at the expense of American farmers, consumers and investors.”

JBS USA, a wholly owned subsidiary of JBS, SA, also has a dominant presence in North America.

The Ban the Batistas campaign calls on the New York Stock Exchange (NYSE) and the Securities and Exchange Commission (SEC) to ban the Batista Brothers from US markets, in what it says would be “a decisive response to their brutal attack on fair play’. .”

Others question that, pointing out that the SEC does not have the power to stop JBS from selling shares in the US. Financial experts say all the company needs to do is disclose its climate impact and other risks to investors.

“Ban the Batistas” appears to be a creative group. After the brothers voted back onto the JBS Board of Directors, ‘Ban the Batistas’ created ‘Joesley Day’, in honor of May 17, 2017, when the bribery tape came out with serious consequences for the San Pablo stock market. It was the day the government of Brazil almost fell.

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