Companies Act 19,550 · Article 199 — Issue in violation of the public-offering regime
Issue in violation of the public-offering regime (art. 199 LGS)
Issues made in violation of the public-offering regime are void, and the resulting securities and rights are unenforceable.
What article 199
Article 199 makes issues that violate the public-offering regime void.
Official text · Act 19,550, art. 199
Share issues made in violation of the public-offering regime are void. Securities or certificates issued as a consequence, and the rights arising from them, are unenforceable against the company, shareholders and third parties.
Source: Law 19,550, art. 199 — InfoLEG (updated official text)
Commentary
The sanction protects market integrity: irregular public fundraising does not create enforceable securities and deters placements outside the CNV regime.
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