Functions of the supervisory board (art. 281 LGS)
Article 281 of the General Companies Law details the powers of the supervisory board: overseeing the board of directors' management, examining the accounting records and assets, and requesting reports.
What article 281
Article 281 sets out the functions of the supervisory board.
The bylaws shall regulate the organization and operation of the supervisory board. Its functions are: a) to oversee the management of the board of directors, being able to examine the accounting records and corporate assets, carry out cash counts and request reports; and the others detailed by the law, including the possibility of approving certain acts and calling a shareholders' meeting.
Source: Law 19,550, art. 281 — InfoLEG (updated official text)
Commentary
The supervisory board controls the board of directors more intensely and 'politically' than the statutory auditor, being exercised by shareholders. Its concrete scope is set by the bylaws within the legal framework.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm