HomeResearch & Knowledgeback to HomeFamily Businessback to Research & KnowledgeUltra Novo Mercado (B)back to Family Business

Case Study

Ultra Novo Mercado (B)

By Nuno Fernandes

2 pages

August 2016

Order this case study

Reference: IMD-7-1780

Pedro Wongtschowski, CEO of Ultrapar, Brazil’s second largest oil and petrochemical company, was rethinking the company’s governance structure. At the annual general meeting, shareholders were scheduled to vote on a proposal to convert the firm’s non-voting shares into voting shares, on a one-to-one basis. This would eliminate the firm’s famous dual-class share structure. If approved, the company would become part of the Novo Mercado, Brazil’s stock market segment with the highest standards of corporate governance. And the transaction would turn Ultrapar into the largest Brazilian company without a defined controlling shareholder. This was an unprecedented move. The unification of shares would perhaps be good for future growth and professionalization, with all shareholders becoming partners with equal rights. But changing to a one-to-one basis without any premium to the controlling shareholders was unusual, and could be difficult to explain to the market. If approved, this Novo Mercado proposal would also imply that all shareholders would become partners with equal rights. Would this be the right time for such a move?

Learning Objective

The case shows how: a) corporate governance practices vary across countries, including environments in which there are dual-class shares; b) corporate governance ensures that managers maximize shareholder value and serve the company’s needs and strategy. It allows for a discussion of: the links between finance and strategy, the role of different types of shares, voting and non-voting, the implications of the one-share-one-vote and the transition to professional management in a family owned firm.

Keywords

Mergers and Acquisitions, Value Creation, Voting, Capital Structure, Emerging Market

Settings

South America, Brazil
Ultrapar, Ipiranga Group, Materials, Oil and Gas
2012-2014

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Keep reading

Case Study

Governance at Uber (B): The board reviews the holder report

Case (B) explains the contents of the Holder report, which investigated the diversity, equity and inclusion culture at Uber and ends with Travis Ka...

Board Corporate Governance Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

Governance at Uber (C): The all-hands meeting

Case (C) discusses the meeting that showcased the proposed actions following the Holder report recommendations and highlights the concerning respon...

Board Corporate Governance Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

How Boeing lost altitude

The case study examines recent aviation safety concerns at Boeing, focusing on manufacturing issues, leadership decisions and regulatory oversight....

Board Corporate Governance Leadership Strategy

By Goutam Challagalla, Patrick Reinmoeller and Samaja Penumaka

Case Study

Governance at Uber (A): Travis Kalanick derails

Case (A) recounts Travis Kalanick’s journey through the growth of Uber, highlighting instances of his problematic behavior and the board’s lack of ...

Board Corporate Governance Diversity and Equity and Inclusion Organizational Culture

By Anand Narasimhan and Shruti Bajpai

Case Study

Jubilee Enterprises of Thailand: Growing through insights

Unyarat Pornprakit (Unya) is the youthful chief executive officer of Jubilee Enterprise PLC, a diamond jewelry retailer. Since Unya became CEO in 2...

General Management Entrepreneurship Family Business

By Philip Charles Zerrillo and Goutam Challagalla

Article

The legacies of entrepreneurial families

Family businesses are integral to the entrepreneurial ecosystems in which they operate. In order to explore how the legacy of individual entreprene...

Family Business Entrepreneurship

By Alfredo De Massis, Peter Trümmel, Vittoria Magrelli, Paola Rovelli and Christof Rissbacher

in Südtiroler Wirtschaftszeitung

7 June 2024

Article

Mastering talent management in family offices: Some insights from research and practice

Just as important as the dynamics between family members are the people who support them. Peter Vogel and Alfredo De Massis provide an overview of ...

Family Business Talent Management

By Peter Vogel and Alfredo De Massis

in The International Family Offices Journal

June 2024, vol. 8, no. 4, pp. 52-56

Article

Executive gender and firm leverage decisions: The role of firm ownership and governance

Female leadership in strategic decision-making has received considerable attention in the context of global gender inequality. To advance our under...

Family Business Board Diversity and Equity and Inclusion

By Alfredo De Massis, Fernando Muñoz-Bullón, Maria J. Sanchez-Bueno, Pilar Velasco and Silvio Vismara

in Journal of Business Research

June 2024, vol. 179, 114700, https://doi.org/10.1016/j.jbusres.2024.114700

Article

Acquisition relatedness in family firms: Do the environment and the institutional context matter?

Research on the acquisition behaviour of family firms has produced conflicting theoretical arguments and mixed empirical findings on their propensi...

Family Business Mergers and Acquisitions

By Michele Pinelli, Francesco Chirico, Alfredo De Massis and Alessandro Zattoni

in Journal of Management Studies

June 2024, vol. 61, no. 4, pp. 1562-1589, https://doi.org/10.1111/joms.12932

Governance at Uber (B): The board reviews the holder report

By Anand Narasimhan and Shruti Bajpai
Case reference: IMD-7-2586 ©2024

Summary

Case (B) explains the contents of the Holder report, which investigated the diversity, equity and inclusion culture at Uber and ends with Travis Kalanick’s separation from the company.

Reference IMD-7-2586

Organization Uber Technologies

Industry Manufacturing, Technology

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Corporate Governance

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

Related topics

Board

Corporate Governance

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

Related topics

Board

Corporate Governance

Leadership

Strategy

Browse all topics

Governance at Uber (A): Travis Kalanick derails

By Anand Narasimhan and Shruti Bajpai
Case reference: IMD-7-2585 ©2024

Summary

Case (A) recounts Travis Kalanick’s journey through the growth of Uber, highlighting instances of his problematic behavior and the board’s lack of oversight.

Reference IMD-7-2585

Organization Uber Technologies

Industry Manufacturing, Technology

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Board

Corporate Governance

Diversity and Equity and Inclusion

Organizational Culture

Browse all topics

Related topics

General Management

Entrepreneurship

Family Business

Browse all topics

The legacies of entrepreneurial families

By Alfredo De Massis Peter Trümmel Vittoria Magrelli Paola Rovelli and Christof Rissbacher
in Südtiroler Wirtschaftszeitung 7 June 2024

Summary

Family businesses are integral to the entrepreneurial ecosystems in which they operate. In order to explore how the legacy of individual entreprene...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Entrepreneurship

Browse all topics

Mastering talent management in family offices: Some insights from research and practice

By Peter Vogel and Alfredo De Massis
in The International Family Offices Journal June 2024, vol. 8, no. 4, pp. 52-56

Summary

Just as important as the dynamics between family members are the people who support them. Peter Vogel and Alfredo De Massis provide an overview of ...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Talent Management

Browse all topics

Executive gender and firm leverage decisions: The role of firm ownership and governance

By Alfredo De Massis Fernando Muñoz-Bullón Maria J. Sanchez-Bueno Pilar Velasco and Silvio Vismara
in Journal of Business Research June 2024, vol. 179, 114700, https://doi.org/10.1016/j.jbusres.2024.114700

Summary

Female leadership in strategic decision-making has received considerable attention in the context of global gender inequality. To advance our under...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Board

Diversity and Equity and Inclusion

Browse all topics

Acquisition relatedness in family firms: Do the environment and the institutional context matter?

By Michele Pinelli Francesco Chirico Alfredo De Massis and Alessandro Zattoni
in Journal of Management Studies June 2024, vol. 61, no. 4, pp. 1562-1589, https://doi.org/10.1111/joms.12932

Summary

Research on the acquisition behaviour of family firms has produced conflicting theoretical arguments and mixed empirical findings on their propensi...

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Mergers and Acquisitions

Browse all topics