Suspending the execution of a challenged decision (art. 252 LGS)
Article 252 of the General Companies Law allows the judge, at a party's request and against security, to suspend the execution of the challenged meeting resolution, if there are serious grounds and no harm to third parties.
What article 252
Article 252 governs the precautionary measure suspending the challenged shareholders' meeting decision.
The judge may suspend, at a party's request, if serious grounds exist and there is no harm to third parties, the execution of the challenged resolution, subject to sufficient security to answer for the damages the measure might cause the company.
Source: Law 19,550, art. 252 — InfoLEG (updated official text)
Commentary
This is the key precautionary measure in a challenge (art. 251): it halts the disputed decision while the lawsuit is pending, to prevent irreversible facts from consolidating. It requires serious grounds and a counter-security.
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