Who may not be a trustee (art. 342 LGS)
Article 342 of the General Companies Law lists the disqualifications of the trustee: directors, statutory auditors and employees of the issuer, and certain shareholders.
What article 342
Article 342 sets out the disqualifications and incompatibilities of the trustee.
The following may not be trustees: the directors, members of the supervisory board, statutory auditors or employees of the issuing company, nor those who cannot be directors, members of the supervisory board or statutory auditors of corporations. Nor may the shareholders who hold one-twentieth or more of the capital.
Source: Law 19.550, art. 342 — InfoLEG (updated official text)
Commentary
It guarantees the trustee's independence from the debtor company: the trustee may not be linked to it, because its function is to defend the debenture holders against the issuer.
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