Atypical companies or companies omitting essential requirements (LGS art. 17)
Section 17 of the General Companies Law prohibits companies governed by statutory forms from omitting essential form-defining requirements or including elements incompatible with the legal form; if they do, they do not produce the effects of that form and fall under Section IV.
What article 17
Section 17 addresses atypical forms and omissions of essential requirements by subjecting the company to the Section IV regime.
The companies provided for in Chapter II of this Law may not omit essential requirements defining the relevant form or include elements incompatible with that legal form. In the event of breach of these rules, the company as formed shall not produce the effects corresponding to its form and shall be governed by Section IV of this Chapter.
Source: Law 19,550, art. 17 - InfoLEG (updated official text)
Commentary
After the 2015 reform, atypical status no longer results in nullity: the company 'falls' into the more flexible Section IV regime (arts. 21 et seq.) and may be cured (art. 25). This represents a major shift from the former, far more severe system.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm