Companies Act 19,550 · Article 229 — Participation bonuses
Participation bonuses (art. 229 LGS)
They may be issued for performances other than capital contributions and carry only a right to participate in annual profits.
What article 229
Article 229 governs participation bonuses.
Official text · Act 19,550, art. 229
Participation bonuses may be issued for performances that are not capital contributions. They only confer a right to participate in annual profits.
Source: Law 19,550, art. 229 — InfoLEG (updated official text)
Commentary
They allow a person providing services, know-how or another non-capital contribution to share economically in results without becoming a shareholder.
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