Challenge to the price of quotas (art. 154 LGS)
Article 154 governs disputes over price when pre-emption rights are exercised.
What article 154
Article 154 governs disputes over price when pre-emption rights are exercised.
When members or the company challenge the price while exercising a pre-emption right, they must state the price they consider realistic. Unless the agreement provides otherwise, price is determined by judicial appraisal; the challengers may not pay more than the proposed transfer price, nor may the transferor receive less than the offered price. Costs fall on the party whose asserted price is furthest from the appraisal.
Source: Law 19,550, art. 154 — InfoLEG (updated official text)
Commentary
Judicial appraisal prevents pre-emption from being used to expropriate quotas cheaply or block exit through an artificial price.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm