Partial distribution during liquidation (art. 107 LGS)
If all company obligations are sufficiently secured, a partial distribution may be made, subject to publicity equivalent to that for a capital reduction.
What article 107
Article 107 permits an advance partial distribution during liquidation.
If all company obligations are sufficiently secured, a partial distribution may be made. Shareholders representing one tenth of the capital in stock corporations and any member in other company types may request it. The partial-distribution resolution shall be published in the same manner and with the same effects as a capital reduction.
Source: Law 19,550, art. 107 — InfoLEG (updated official text)
Commentary
The rule avoids forcing members to wait until the very end to recover value: once creditors are adequately protected, part of the surplus may be distributed, with publicity designed to protect third parties.
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