Common use of FISCAL BOARD Clause in Contracts

FISCAL BOARD. 4.1 The Fiscal Board of Braskem shall be made up of five (5) members and their respective alternates, and shall operate on a permanent basis. 4.2 As long as the Petrobras System holds a direct and indirect participation in the voting capital of Braskem, which is equal to or in excess of thirty percent (30%), the Parties shall be ensured the right to elect most of the members of Braskem’s Fiscal Board pursuant to the terms of item "b" of paragraph 4 of Article 161 of the Corporation Law, and each of Odebrecht and the Petrobras System shall be entitled to elect two (2) members of the Fiscal Board, with the Petrobras System having the right to appoint its chairman. 4.2.1. If the Petrobras System is to hold a direct and indirect participation in the voting capital of Braskem lower than thirty percent (30%) and exceeding eighteen percent (18%), the Petrobras System shall be ensured the right to elect two (2) members of Braskem’s Fiscal Board, provided that Odebrecht shall be ensured the right to elect the majority of its members. 4.3 The Parties undertake not to appoint as a member of the Fiscal Board of Braskem any persons holding management positions (whether as a director, officer or any other position) in competing petrochemical companies.