What is a stock corporation: share capital (Art. 163 LGS)

A stock corporation has capital represented by shares and shareholders limit liability to paying in the shares they subscribe. It is the classic corporate form for larger enterprises and access to capital.

What article 163

Article 163 defines the stock corporation’s core traits: share capital and limited shareholder liability.

Source: Law 19,550, art. 163 — InfoLEG (updated official text)

Commentary

The stock corporation is the quintessential capital company: ownership is represented by shares, facilitating transfer and entry of new investors. A shareholder’s risk is generally limited to the amount subscribed.

Its structure is more complex than an SRL: shareholders’ meetings, a board of directors and, where required, an oversight body. The law also permits the single-shareholder S.A.U., while Article 299 companies are subject to permanent state supervision.

Distinctions often confused

Practical impact

A stock corporation is suitable for projects with multiple investors, transferability needs or financing access, but involves more corporate organs and costs than an SRL.

Frequently asked questions