The controlling authority may request suspension and intervention (art. 303 LGS)
Article 303 of the General Companies Law empowers the controlling authority to ask the judge for the suspension of unlawful resolutions, intervention and even dissolution in certain cases.
What article 303
Article 303 sets out the judicial powers of the controlling authority.
The controlling authority is empowered to request from the competent judge: 1) the suspension of the resolutions of the corporate bodies if they are contrary to the law, the bylaws or the regulations; 2) the intervention of its management in such cases when it makes a public offering or falls under article 299; and the dissolution and liquidation in the cases provided by law.
Source: Law 19,550, art. 303 — InfoLEG (updated official text)
Commentary
When administrative penalties are not enough, the agency may turn to the courts to halt unlawful decisions, place the company under intervention or even liquidate it. It is the strongest tier of state control.
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