Pledge and attachment of shares (art. 219 LGS)
Rights remain with the owner, and the secured creditor or attachment holder must facilitate their exercise while preserving the security.
What article 219
Article 219 governs rights in pledged or judicially attached shares.
In the event of a pledge or judicial attachment, the rights belong to the owner of the shares. The holder of the real right or attachment is required to facilitate exercise of the owner’s rights by depositing the shares or by another procedure that safeguards its rights.
Source: Law 19,550, art. 219 — InfoLEG (updated official text)
Commentary
Even when encumbered, the shares leave shareholder status with the owner. The rule balances creditor security with normal exercise of voting, dividend and other shareholder rights.
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