Liability action in the event of bankruptcy (Art. 278 LGS)
Article 278 of the General Companies Law assigns the liability action, in the event of bankruptcy, to the bankruptcy estate's representative and, failing that, to the creditors.
What article 278
Article 278 governs the exercise of the liability action following the company's bankruptcy.
In the event of the company's bankruptcy, the liability action may be exercised by the bankruptcy estate's representative and, failing that, will be exercised by the creditors individually.
Source: Law 19,550, Art. 278 — InfoLEG (updated official text)
Commentary
In insolvency, the party who pursues the directors' liability is the bankruptcy trustee (in the interest of the creditors) and, if he does not, the creditors themselves. This is consistent with the fact that extinction of liability is ineffective in bankruptcy (Art. 275).
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