Return to the regulation of foreign companies by the Companies’ House and additional requirements for their legal representatives

New BACK

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.