Reorganization of the management (art. 320 LGS)
Article 320 of the General Companies Law requires the management of the partnership limited by shares to be reorganized within three months if it cannot operate, with a provisional manager appointed by the statutory auditor.
What article 320
Article 320 governs the vacancy in the management of the partnership limited by shares.
When the management cannot operate, it must be reorganized within a term of three (3) months. The statutory auditor shall appoint for this period a provisional manager to carry out the ordinary acts of management, who shall act with third parties disclosing his capacity.
Source: Law 19,550, art. 320 — InfoLEG (updated official text)
Commentary
It prevents the company from being paralyzed if the manager is missing: the statutory auditor appoints a provisional one for urgent matters while it is reorganized, with a three-month term to return to normal.
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