State surveillance at the request of the minority (art. 301 LGS)
Article 301 of the General Companies Law allows the controlling authority to supervise ordinary corporations at the request of shareholders holding 10% or of a statutory auditor, or when it deems it necessary.
What article 301
Article 301 enables surveillance functions over corporations not included in article 299.
The controlling authority may exercise surveillance functions over corporations not included in article 299 when requested by shareholders representing ten percent (10%) of the subscribed capital or required by any statutory auditor (limited to the facts on which the request is grounded), or when it deems it necessary to safeguard the public interest.
Source: Law 19,550, art. 301 — InfoLEG (updated official text)
Commentary
Even without permanent oversight, the minority (10%) or the statutory auditor can 'activate' state control in the face of specific irregularities. It is a means of protection against abuses in closely held corporations.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm