The Amount of Capital Stock for Companies to Be Subject to Permanent State Control Was Updated

Resolution 10/2024 of the Ministry of Justice—published in the Official Gazette on February 8, 2024, and effective as from February 16, 2024—updates the amount of capital stock as from which corporations are subject to permanent state control, pursuant to article 299 paragraph 2 of the General Corporations Law 19550. This amount is now set at ARS 2,000,000,000 (ARS two billion).

The aim of the Resolution is to adjust to the economic reality the amount as from which companies are subject to permanent state control. The last time this amount was updated was on July 11, 2018, through Resolution 529/2018 of the Ministry of Justice, when it was set at ARS 50,000,000 (ARS fifty million).

Falling under article 299 entails complying with certain formalities for filing financial statements and requires having a plural Board of Directors and a supervisory body. It also has consequences for other types of companies, such as limited liability companies, which must also have a statutory auditor.