Election of directors by class of shares (art. 262 LGS)
Article 262 of the General Companies Law allows that, where different classes of shares exist, the bylaws may provide for each class to elect one or more directors.
What article 262
Article 262 governs the election of directors by class of shares.
When different classes of shares exist, the bylaws may provide that each of them elect one or more directors, regulating the election for that purpose. Removal shall be by the class shareholders' meeting, except in the cases of articles 264 and 276.
Source: Law 19,550, art. 262 — InfoLEG (updated official text)
Commentary
This is another tool for representation on the board: each class of shares appoints its own directors. Cumulative voting is excluded when this system is used (art. 263), because it already ensures representation by class.
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