A new amendment to the Companies Law authorizes Sole Shareholder Corporation –SAU- to appoint a sole director and a single statutory supervisor.
On November 18, 2016, Law No. 27,290 was published in the Official Gazette. It amends sections 255 and 284 of the Companies Law No. 19,550 (“LGS”) again.
Law No. 27,290 is in force as of November 26, 2016.
Law No. 27,290 amends Section 255 of the LGS, which refers to the composition of the Board of Directors, returning to the previous wording though it clarifies that SAUs will not require appointing a Board of Directors comprised of at least three members.
The same occurs as regards Section 284 of LGS which refers to the appointment of the statutory supervisor, which adds SAU as an additional exemption to the appointment of a statutory supervisor committee comprised of at least three members.
Thus, as per amendments introduced by Law No. 27,290, SAUs will be able to:
- appoint the number of members of the Board of Directors as provided in the by-laws, even if it is a sole director; and
- appoint a single statutory supervisor.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.