Disposal of assets with floating security (art. 329 LGS)
Article 329 of the General Companies Law allows the company to continue managing and disposing of its assets despite the floating security, save for limitations in the issue contract.
What article 329
Article 329 sets out the company's powers over assets with floating security.
The company shall retain the disposal and management of its assets as if they were not encumbered, as long as one of the cases provided for in the preceding article does not occur. These powers may be excluded or limited with respect to certain assets in the issue contract, the limitation having to be registered.
Source: Law 19,550, art. 329 — InfoLEG (updated official text)
Commentary
The advantage of the floating security for the company is that it does not hinder its operation: it disposes of its assets normally until a ground for enforceability occurs, save for agreed restrictions on certain assets.
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