Members’ contributions during liquidation (art. 106 LGS)
If company funds are insufficient to pay its debts, liquidators must demand from the members the contributions due under the company type or constitutive instrument.
What article 106
Article 106 governs members’ contributions when company assets are insufficient to cover liabilities.
Where company funds are insufficient to satisfy its debts, liquidators are required to demand from the members the contributions due in accordance with the company type or the constitutive instrument.
Source: Law 19,550, art. 106 — InfoLEG (updated official text)
Commentary
If assets do not cover liabilities, those members who are liable for company debts must contribute as required by the applicable company type. In SRLs and S.A.s the exposure is generally limited to the committed contribution; partnerships may involve broader liability.
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