Ecopetrol publishes measures to ensure the adequate representation of Shareholders at the Extraordinary Shareholders' Meeting to be held on January 10, 2024

Rhea-AI Summary

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced measures to ensure adequate shareholder representation at the upcoming extraordinary meeting. The company is the largest in Colombia, responsible for over 60% of hydrocarbon production and holds leading positions in various energy-related segments.

Corporate Governance Expert

Corporate governance practices are pivotal in maintaining investor trust and ensuring the integrity of financial markets. The announcement by Ecopetrol S.A. outlining the measures adopted for shareholder representation at an extraordinary meeting underscores the company's commitment to robust governance standards. Such measures are designed to prevent conflicts of interest and promote transparency, which can be seen as a positive signal to investors concerned with corporate governance. The directive to avoid suggesting proxies and the verification process for the powers of attorney also align with best practices, potentially strengthening the company's reputation and, by extension, investor confidence.

Legal Expert

The legal framework surrounding shareholder meetings is critical for the protection of shareholder rights and the proper functioning of corporate entities. Ecopetrol S.A.'s adherence to the Basic Legal Circular issued by the Financial Superintendency of Colombia indicates compliance with national regulations. This compliance is not only a legal imperative but also serves as a risk mitigation factor for shareholders. By ensuring that proxy appointments and the exercise of shareholder rights are conducted within the legal parameters, Ecopetrol is likely aiming to avoid potential litigation or regulatory sanctions that could adversely affect its market valuation and operational continuity.

Financial Analyst

From a financial perspective, the governance measures announced by Ecopetrol S.A. are not directly indicative of immediate financial impact, but they are suggestive of the company's long-term strategic positioning. Shareholder engagement and proper representation at meetings are essential for the ratification of significant corporate decisions, which could include mergers, acquisitions, or changes in strategic direction. These decisions could, in turn, have profound implications on the company's financial health and its stock performance. Investors often view companies with strong governance as less risky, which can lead to a more favorable cost of capital for Ecopetrol.

BOGOTÁ, Colombia, Dec. 21, 2023 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that in order to comply with the provisions of Part III Title I Chapter VI of the Basic Legal Circular issued by the Financial Superintendency of Colombia (E.C. 029 of 2014), the Board of Directors of Ecopetrol S.A. approved the implementation of measures aimed at ensuring the adequate representation of shareholders at the extraordinary meeting of the Assembly to be held on January 10, 2024 and, in this regard, requested the Management to:

• The shareholders should be informed of the power of representation that they have through the appointment of a proxy and the legal requirements of the powers of attorney granted for such purpose should be indicated.
• Those appointed to verify the powers of attorney granted by the shareholders should be instructed that those that do not comply with the minimum requirements established by law will not be admitted as valid, and that powers of attorney will not be received if the name of the respective representative is not clearly defined.
• Do not suggest or determine the name of the shareholders' proxy.
• Do not suggest, coordinate or agree with the shareholders: (i) the presentation of proposals at the Meeting and/or (ii) the voting for or against any proposal to be presented at the Meeting.
• No proxies shall be granted to persons directly or indirectly related to the management or employees of Ecopetrol S.A.
• The Legal Vice-Presidency shall be the area responsible for the process of reviewing and verifying the powers of attorney.
• The Vice-Presidency of Corporate Affairs and General Secretary of Ecopetrol S.A. be responsible for ensuring the implementation and compliance with the above measures.

The above measures were adopted by the members of the Board of Directors of Ecopetrol S.A. in a meeting held on December 19, 2023 and are reported prior to the respective General Shareholders' Meeting.

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Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 18,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects. These are all projections and, as such, they are based solely on the expectations of the managers regarding the future of the company and their continued access to capital to finance the company's business plan. The realization of said estimates in the future depends on the behavior of market conditions, regulations, competition, and the performance of the Colombian economy and the industry, among other factors, and are consequently subject to change without prior notice. 

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.

For more information, please contact: 

Head of Capital Markets 
Carolina Tovar
Email: investors@ecopetrol.com.co

Head of Corporate Communications 
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

What measures did Ecopetrol approve for shareholder representation at the upcoming meeting?

Ecopetrol approved measures to ensure adequate shareholder representation at the extraordinary meeting, including informing shareholders of the power of representation through the appointment of a proxy and verifying the legal requirements of the powers of attorney granted.

What is Ecopetrol's position in the Colombian energy industry?

Ecopetrol is responsible for over 60% of hydrocarbon production in Colombia and holds leading positions in transportation, logistics, hydrocarbon refining, petrochemicals, and gas distribution segments.

What are Ecopetrol's international operations?

Ecopetrol has international operations in strategic basins in the American continent, including drilling and exploration operations in the United States, Brazil, and Mexico, as well as leading positions in power transmission, road concessions, and the telecommunications sector in various countries.

What do the business prospect statements in the press release entail?

The press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects, which are projections based on the expectations of the managers regarding the future of the company.