What a member's personal creditors may enforce against (LGS art. 57)
Article 57 of the General Companies Law protects the personal interest held in partnership-type companies: a member's personal creditors may not force its sale and may recover only from distributions of profits and the liquidation share; by contrast, SRL quotas and shares may be sold in enforcement proceedings.
What article 57
Article 57 distinguishes what a member's personal creditors may enforce against depending on the nature of the equity interest.
A member's creditors may not cause the member's partnership interest to be sold; they may collect only from profits and the liquidation share. The company may not be extended if the individual attaching creditor has not been satisfied. In limited-liability companies and companies limited by shares, quotas or shares owned by the debtor may be caused to be sold.
Source: Law 19,550, art. 57 - InfoLEG (updated official text)
Commentary
A partnership-type 'interest' is more personal in nature: the member's personal creditor cannot auction it and is limited to profits and the liquidation entitlement. SRL quotas and S.A. shares, by contrast, are more clearly patrimonial and can be attached and sold.
Do you need advice on this matter?
The firm is headquartered in Buenos Aires, Argentina, and advises clients worldwide.
Contact the firm