2. Governance

2.1 Shareholder manual model is an international highlight

The PREVI model of a Manual to Prepare to Participate in Shareholder Meetings was launched in November. The manual was the outcome of surveys carried out regarding manuals that have previously been adopted in Brazil and abroad. The publication was officially supported by Hermes, the investment manager for the British Telecom group’s pension fund, Great Britain’s biggest, which administers assets in the order of $57 billion. The digital version of the model is available at previ.com.br.

2.2 First Latin American PRI workshop

PREVI was the first Brazilian pension plan to adhere to the Principles for Responsible Investment (PRI), in April 2008. In May 2008, it held the first workshop for signatories, which brought together 14 pension funds and six fund managers of Latin America, in Rio de Janeiro. In June, CEO Sérgio Rosa was elected the Latin American representative on the PRI’S Board.

2.3 Audit committees for all

After four years of attempts and appeals at the Securities Exchange Commission (CVM), in March PREVI was successful in securing the installation of audit committees in companies it holds stakes in. The CVM concluded minority shareholders need not represent 10% of the voting capital, at the time of the meetings, to elect a member of the Audit Committee. All that is required is that 10% of the company’s ordinary stock be free float.

2.4 Achievements at Souza Cruz and Bombril

In March, PREVI spearheaded the process of installing the Audit Committee at Souza Cruz. In April, as suggested by PREVI, Bombril convened an Extraordinary General Meeting and proposed a change to the bylaws to turn the Audit Committee
into a permanent body. The shareholders approved the issue.

2.5 Participation in meetings

In 2008, PREVI was represented in 131 meetings. The goal was to drive the adoption of the best corporate governance practices at the companies. Transparency and commitment to inspection by the shareholders were the focus of this work.

2.6 Annual Councilor Gathering

To allow for experience sharing and to drive knowledge among PREVI’S representatives on the audit committees and on the boards of the companies PREVI holds stakes in, the 9th Councilor Gathering was held in June, in the Costa do Sauípe. During the three-day event, some 180 councilors participated in the Gathering, which had “The process of internationalization of Brazilian companies” as its guiding theme.