Companies Act 19,550 · Article 358 — Liability of directors (debentures)
Liability of directors towards the debenture holders (art. 358 LGS)
Article 358 of the General Companies Law makes directors unlimitedly and jointly and severally liable for the harm to debenture holders arising from breaching the debenture regime.
What article 358
Article 358 sets out the liability of directors towards the debenture holders.
Official text · Act 19,550, art. 358
The directors of the company are unlimitedly and jointly and severally liable for the harm that the breach of the provisions of this Section causes to the debenture holders.
Source: Law 19,550, art. 358 — InfoLEG (updated official text)
Commentary
Directors are personally liable if, in managing the loan, they breach the law and harm the debenture holders. It reinforces the protection of the debt investor.
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