Company creditors and members' personal creditors under Section IV (LGS art. 26)
Section 26 of the General Companies Law treats Section IV companies like statutory companies with respect to the relationship between company creditors and the personal creditors of members, including in bankruptcy and as regards registrable assets.
What article 26
Section 26 governs priority between company creditors and members' personal creditors in Section IV companies.
Relations between company creditors and the personal creditors of the members, including in the event of bankruptcy, shall be determined as though the company were one of the forms provided for in Chapter II, including with respect to registrable assets.
Source: Law 19,550, art. 26 - InfoLEG (updated official text)
Commentary
The rule reinforces the separate asset pool of a Section IV company: its creditors look to company assets ahead of the personal creditors of its members, as in any statutory company. It completes the recognition of legal personality for these companies.
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