Companies Act 19,550 · Article 357 — Prohibition on taking its own debentures as security
The company may not take its own debentures as security (art. 357 LGS)
Article 357 of the General Companies Law prohibits the issuing company from taking its own debentures as security.
What article 357
Article 357 prohibits the issuer from taking its own debentures as security.
Official text · Act 19,550, art. 357
The issuing company may not take its own debentures as security.
Source: Law 19,550, art. 357 — InfoLEG (updated official text)
Commentary
As with treasury shares (art. 222), taking its own debentures as security would mean securing itself with its own debt. The prohibition protects the seriousness of the backing.
This page is informational and does not constitute legal advice nor replace professional consultation. It quotes the official text of the rule; for its application to a specific case, consult a licensed professional.
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