Companies Act 19,550 · Article 133 — Partner’s non-compete duty
Partner’s non-compete duty (art. 133 LGS)
Article 133 prohibits a general partner from competing with the company without unanimous consent.
What article 133
Article 133 prohibits a general partner from competing with the company without unanimous consent.
Official text · Act 19,550, art. 133
A partner may not, for his or her own account or for another, perform acts that compete with the company unless expressly and unanimously consented to by the other partners. A breach authorizes expulsion of the partner, recovery of profits obtained and damages.
Source: Law 19,550, art. 133 — InfoLEG (updated official text)
Commentary
Competition breaches the loyalty expected in a personal partnership and may lead to expulsion, disgorgement of gains and damages.
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