Forms of judicial intervention (art. 115 LGS)
Intervention may take the form of an observer, one or more co-administrators, or one or more judicial administrators; the court defines mission, powers and duration.
What article 115
Article 115 establishes the possible degrees of judicial intervention and limits the appointee’s powers.
Intervention may consist of appointing a mere monitor or observer, one or more co-administrators, or one or more administrators. The court shall define the mission to be performed and the powers granted according to their functions, which may not exceed those attributed to the administrators by the constitutive instrument or by law. The court shall set the duration, which may be extended upon a summary showing of necessity.
Source: Law 19,550, art. 115 — InfoLEG (updated official text)
Commentary
The statute provides a graduated scale: observation, co-management or administrative substitution. The court must select a measure proportionate to the risk, define its scope and duration, and may not grant powers greater than those of the company’s own administrators.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm