Companies Act 19,550 · Article 174 — Oversubscription
Oversubscription (art. 174 LGS)
Article 174 governs subscriptions exceeding the planned capital.
What article 174
Article 174 governs subscriptions exceeding the planned capital.
Official text · Act 19,550, art. 174
When subscriptions exceed the planned amount, the constitutive meeting shall decide either to reduce them pro rata or to increase the capital to the amount subscribed.
Source: Law 19,550, art. 174 — InfoLEG (updated official text)
Commentary
In an oversubscription, the constitutive meeting chooses between pro rata scaling and increasing capital.
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