What debentures are and who may issue them (art. 325 LGS)
Article 325 of the General Companies Law allows corporations and partnerships limited by shares, if the bylaws so authorize, to take out loans by issuing debentures.
What article 325
Article 325 authorizes the issuance of debentures by certain companies.
Corporations, including those of Section VI, and partnerships limited by shares may, if their bylaws so authorize, take out loans publicly or privately by issuing debentures.
Source: Law 19,550, art. 325 — InfoLEG (updated official text)
Commentary
Debentures are debt securities (corporate bonds): the company finances itself by taking money from the public or from private parties in exchange for these securities. They require authorization in the bylaws. Today they coexist with negotiable obligations, more widely used in the market.
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