Restrictions on sale and reorganization (art. 330 LGS)
Article 330 of the General Companies Law prohibits the company with floating security from selling all its assets or merging/dividing without authorization from the meeting of debenture holders.
What article 330
Article 330 sets out the limits on the disposal of the assets and the reorganization of the company with floating security.
The company that has constituted a floating security may not sell or assign all of its assets, nor part of them if this would make the continuation of the business impossible, nor merge or divide with another company without authorization from the meeting of debenture holders.
Source: Law 19,550, art. 330 — InfoLEG (updated official text)
Commentary
It protects the debenture holders against maneuvers that empty out or distort the company: acts that compromise its continuity or its assets require their consent.
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