Companies Act 19,550 · Article 203 — Voluntary capital reduction
Voluntary capital reduction (art. 203 LGS)
A voluntary reduction must be resolved by an extraordinary shareholders’ meeting with a reasoned report from the statutory auditor where applicable.
What article 203
Article 203 governs voluntary reduction of share capital.
Official text · Act 19,550, art. 203
A voluntary reduction of capital must be resolved by an extraordinary shareholders’ meeting with a reasoned report of the statutory auditor, where applicable.
Source: Law 19,550, art. 203 — InfoLEG (updated official text)
Commentary
Because a reduction can affect creditor protection, it requires an extraordinary resolution and statutory-auditor review. It differs from loss-based reductions under Articles 205 and 206.
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