BRAZIL – The board at JBS has elected Jeremiah O’Callaghan as the new chairman of the company, replacing Tarek Farahat, who is moving into the position of global advisor.
O’Callaghan joined JBS in 1996 and has served as the Investor Relations Officer for the company for the past 10 years.
According to the company statement, the board of directors also unanimously elected Cledorvino Belini, Roberto Penteado de Camargo Ticoulat and Wesley Batista Filho to the board.
The three and O’Callaghan join José Batista Sobrinho, Gilberto Meirelles Xandó Baptista, Aguinaldo Gomes Ramos Filho, José Gerardo Grossi and Sérgio Roberto Waldrich on the nine-member board.
“I am convinced that the new composition of the board, including professionals with extensive experience and four independent members, is an important milestone in the strengthening of JBS corporate governance,” O’Callaghan said.
“In addition, I am confident that this board will continue to provide support to the initiatives of the company’s officers for the prosperity of the business, as well as in promoting its relevant social function.”
However, the Brazilian Securities and Exchange Commission (CVM) recently opened a “Sanctioning Administrative Proceeding” against O’Callaghan.
The agency is accusing O’Callaghan of not questioning managers and controllers of JBS SA regarding the plea agreement reached by federal prosecutors and Joesley and Wesley Batista.
CVM also claims that O’Callaghan failed to disclose information about the agreement to the market in a timely manner and by using a “Material Fact” form, which is used to inform the market about company details.
The string of corruption and food safety scandals that have followed JBS SA led the company to withdraw plans for an initial public offering for a processed food business in the United States.