Representation and registrable assets under Section IV (LGS art. 23)
Section 23 of the General Companies Law allows any member of a Section IV company to represent the company by producing the agreement, and permits these companies to acquire registrable assets by proving their existence.
What article 23
Section 23 governs representation and the acquisition of registrable assets by Section IV companies.
Clauses relating to representation, management and organization may be invoked among the members. In dealings with third parties, any member represents the company by producing the agreement, but a provision of the agreement may be enforced against a third party if it is proved that the third party knew of it.
Registrable assets. To acquire registrable assets, the company must prove to the Registry its existence and the authority of its representative by an acknowledgment instrument executed by all those claiming to be its members.
Source: Law 19,550, art. 23 - InfoLEG (updated official text)
Commentary
Another key 2015 change is that a Section IV company may hold registrable assets in its own name (which it could not previously do), by proving its existence through an acknowledgment instrument executed by the members. This facilitates informal companies' dealings with real estate and vehicles.
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