Contribution of encumbered assets (LGS art. 43)
Article 43 of the General Companies Law allows encumbered assets to be contributed only at their value net of the encumbrance, which the contributor must specify.
What article 43
Article 43 establishes how a contribution of an asset subject to an encumbrance, such as a mortgage or pledge, is accounted for.
Encumbered assets may only be contributed at their value after deduction of the encumbrance, which must be specified by the contributor.
Source: Law 19,550, art. 43 - InfoLEG (updated official text)
Commentary
Mortgaged real estate or pledged movable property is contributed at its value net of the encumbrance: the secured debt is deducted. Stated capital therefore reflects the real value entering the company rather than an inflated amount based on an asset already burdened by security.
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