Control powers of the trustee (art. 345 LGS)
Article 345 of the General Companies Law grants the trustee control powers over the debtor company: to review its accounting, attend the meetings and request the suspension of the board of directors.
What article 345
Article 345 sets out the trustee's control powers over the debtor company.
The trustee, in the cases of debentures with common or floating security, always has the following powers: 1) to review the documentation and accounting of the debtor company; 2) to attend, with voice but no vote, the meetings of the board of directors and of the assemblies; 3) to request the suspension of the board of directors in the legally established cases.
Source: Law 19.550, art. 345 — InfoLEG (updated official text)
Commentary
The trustee monitors the debtor in defense of the debenture holders: it accesses the accounting, attends the meetings and, in the face of serious breaches, may go so far as to request the suspension of the board of directors.
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