Return to the regulation of foreign companies by the Companies’ House and additional requirements for their legal representatives
CORPORATE LAW
Return to the regulation of foreign companies by the Companies’ House and
additional requirements for their legal representatives
On February 21, 2020 Resolution No. 2/20 of the Companies’ House (Inspección
General de Justicia) was published in the Official Gazette. Such Resolution
reestablishes the rules related to the obligation of the foreign companies,
which are registered or intend to be registered under sections 118 and 123 of
the Corporate Act, to provide information regarding their non- current assets
and shareholders.
Within 120 calendar days following the closing date of the financial
statements, the aforementioned companies shall confirm again its shareholders
and evidence that their main economic activity is located outside Argentina.
The Resolution sets forth again the case of the vehicle companies that may be
registered if their directly or indirectly controlling company complies with
the requirements of economic activity abroad and reestablishes the rules
applicable to those companies that are publicly known to have business activity
abroad or are part of international economic groups.
Furthermore, the representatives of such foreign companies are obliged to
constitute a warranty that shall remain effective until the cancellation of
their registration as representative plus one additional term counted as from
said cancellation which shall be the same as the statute of limitations
applicable to compensation actions due to tort liability.
This Resolution shall be effective as from its date of publication.
Consequently, the currently registered foreign companies shall comply with the
annual informative regime within 120 calendar days as from the date of their
next year-end closing as well as confirm the constitution of the warranty for
each representative.
Should you require further information, do not hesitate to contact Patricio
A. Martin, Florencia Pagani and/or Lucila
Primogerio.