Use of the expression MERCOSUR in corporate names

On October 24, 2007 the Official Gazette published General Resolution No 2/2007 of the Public Registry of Commerce -“Inspección General de Justicia”- (the “Resolution”), which introduces criteria additional to those already in force concerning the requirements to be fulfilled by Argentine companies on the use of the expression “Mercosur” in their corporate names.

In general terms, local companies that wish to use the word “Mercosur” in their corporate name must comply with the following:

a)     the word “Mercosur” may not be used separately, but only as part of the corporate name;

b)     such corporate name must have a direct relationship with the corporate purpose; and

c)     the expression must not be used in a misleading way that may give rise to mistake or confusion on the part of official bodies.

In addition, in cases where a local company utilizes the term “Mercosur” or other expressions that include such term, it must demonstrate that it performs its corporate purpose in various jurisdictions of the Mercosur member countries.

The purpose of the Resolution is to adopt the measures necessary to prohibit incorrect use of the expression “Mercosur” in names of companies acting within Argentina, in accordance with article 6 of Mercosur’s Consejo del Mercado Comun No 17/2002 approved by Law No 26,144 dated September 27, 2006 and in force as of October 23, 2006.

Finally, it should be noted that the Resolution also applies to civil associations and foundations and that it has been in force since October 24.