Capital reduction: creditors’ rights (art. 204 LGS)
A capital-reduction resolution gives creditors the opposition right under Article 83(2) and requires publication before registration, subject to the statutory exception.
What article 204
Article 204 governs creditors’ rights upon a capital reduction.
The reduction resolution gives creditors the right governed by Article 83(2) and must be registered after the publication required thereunder. This provision does not apply where the reduction occurs through amortization of fully paid shares using profits or free reserves.
Source: Law 19,550, art. 204 — InfoLEG (updated official text)
Commentary
A reduction lowers the stated guarantee and therefore creditors may oppose it. The exception covers amortization using profits or free reserves, which does not impair the protected capital.
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