Companies Act 19,550 · Article 359 — Liability of the trustee
Liability of the trustee (art. 359 LGS)
Article 359 of the General Companies Law limits the liability of the trustee to cases of willful misconduct or gross negligence in the exercise of its functions.
What article 359
Article 359 sets out the liability of the debenture trustee.
Official text · Act 19,550, art. 359
The trustee does not incur personal liability, except for willful misconduct or gross negligence in the performance of its functions.
Source: Law 19,550, art. 359 — InfoLEG (updated official text)
Commentary
The trustee is liable only for willful misconduct or gross negligence: a more lenient standard than that of the managers, consistent with its role as a representative acting on behalf of the debenture holders.
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