Corporate Governance Practices and the Brazilian Corporate Governance Institute (IBGC)

According to the IBGC, corporate governance is the system by which companies are managed and monitored and involves the relations with shareholders, the board of directors, the executive board, the independent auditors and the fiscal council. The basic principles that guide this practice are: (i) transparency; (ii) equitable treatment; (iii) accountability; and (iv) corporate responsibility.

Under the principle of transparency, management must cultivate the desire to inform not only the Company‘s financial performance, but also all other factors (even if intangible) that guide the business activities. Equitable treatment is defined as the fair and equal treatment of all minority groups, employees, clients, suppliers or creditors. Meanwhile, accountability means being accountable for the actions of corporate governance agents to those who elected them, and being fully liable for all acts executed. Lastly, corporate responsibility represents a broader view of the business strategy that incorporates social and environmental aspects into the definition of the business and operations.

The main corporate governance practices adopted by the Company are listed below: