Amortization of shares (art. 223 LGS)
The charter may authorize total or partial amortization, with a shareholders’ resolution setting a fair price and ensuring equality; selection by lot requires supervision, publication and registration.
What article 223
Article 223 governs amortization of fully paid shares using realized and liquid profits.
The charter may authorize total or partial amortization of fully paid shares using realized and liquid profits, subject to: 1) a prior shareholders’ resolution fixing a fair price and ensuring equality among shareholders; 2) if carried out by lot, the drawing shall take place before the supervisory authority or a notary and shall be published and registered.
Source: Law 19,550, art. 223 — InfoLEG (updated official text)
Commentary
Amortization repays the value of shares using profits without impairing stated capital. Fair price and equality prevent favoritism.
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