Contribution of shares and securities (LGS art. 42)
Article 42 of the General Companies Law governs the contribution of securities: exchange-traded securities may be contributed up to their quoted market value; unquoted securities are valued under articles 51 et seq.
What article 42
Article 42 establishes how contributed securities are valued depending on whether they are exchange-traded.
Securities quoted on an exchange may be contributed up to their quoted value. If they are not quoted, or if quoted but not regularly traded during the three (3) months preceding the contribution, they shall be valued according to the procedure set forth in articles 51 et seq.
Source: Law 19,550, art. 42 - InfoLEG (updated official text)
Commentary
For actively quoted securities, the market establishes the value and provides a cap; for unquoted securities, the general rules on valuation of contributions in kind apply (art. 51). This prevents illiquid shareholdings from being overvalued when contributed as capital.
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