Companies Act 19,550 · Article 222 — Shares as collateral
Shares as collateral (art. 222 LGS)
The company may not receive its own shares as collateral.
What article 222
Article 222 prohibits a company from accepting its own shares as collateral.
Official text · Act 19,550, art. 222
The company may not receive its shares as collateral.
Source: Law 19,550, art. 222 — InfoLEG (updated official text)
Commentary
The prohibition protects capital integrity: the company’s own equity instrument is not appropriate collateral in its own favor.
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