Companies Act 19,550 · Article 192 — Default in payment: suspension of rights
Default in payment: suspension of rights (art. 192 LGS)
Default in paying up shares, as determined under Article 37, automatically suspends exercise of the rights attached to the defaulted shares.
What article 192
Article 192 provides for automatic suspension of rights upon default in payment.
Official text · Act 19,550, art. 192
Default in payment occurs in accordance with Article 37 and automatically suspends exercise of the rights inherent in the shares in default.
Source: Law 19,550, art. 192 — InfoLEG (updated official text)
Commentary
While the default continues, the shareholder may not exercise rights attached to those shares, such as voting and dividends. The sanction is automatic and is additional to the remedies under Article 193.
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