Companies Act 19,550 · Article 230 — Employee participation bonuses
Employee participation bonuses (art. 230 LGS)
They may be awarded to employees; their profit participation is treated as an expense, they are non-transferable and expire when employment ends.
What article 230
Article 230 governs participation bonuses granted to company personnel.
Official text · Act 19,550, art. 230
Participation bonuses may also be awarded to company personnel. The profits corresponding to them shall be accounted for as expenses. They are non-transferable and expire upon termination of the employment relationship, whatever the cause.
Source: Law 19,550, art. 230 — InfoLEG (updated official text)
Commentary
It is a retention-linked incentive: employees share in profits while employed without acquiring shareholder status.
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