Companies Act 19,550 · Article 183 — Acts during the formation period
Acts during the formation period (art. 183 LGS)
Article 183 governs acts and liability of a stock corporation in formation.
What article 183
Article 183 governs acts and liability of a stock corporation in formation.
Official text · Act 19,550, art. 183
Directors may bind the company only for acts necessary to formation and acts within the corporate purpose expressly authorized for the formation period. Directors, founders and the company in formation are jointly and severally and unlimitedly liable for such acts until registration.
Source: Law 19,550, art. 183 — InfoLEG (updated official text)
Commentary
Before registration, powers are limited and the persons conducting the company bear personal risk.
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