On Aug. 21, ARG JST reported registry as public limited companies.
ARG JST published General Resolution 18/24 to modify regulatory frameworks for the registration of the transformation of civil associations into public limited companies.
Background
Decree 70/2023 modified General Law 19.550, replacing the text and establishing that associations and non-profit entities may be part of the public limited companies.
Decree 730/2024 indicates that the members of the civil associations should be understood as those who participate in extraordinary assembly of the civil association.
Highlights
Article 351 established conditions under which civil associations and foundations may participate in companies, requiring approval of the assembly or board of directors.
Article 352 established the regulation for entities to acquire free of charge shares.
Adds Article 345 bis and new article to Annex A of General Resolution IGJ 15/24, establishing requirements for the registry of civil association to become a corporation.
This includes the presentation of the public deed of the transformation agreement.
As well as the special balance sheet, and accounting and prequalification reports.
Effectiveness
General Resolution 18/24 comes into force on Nov. 1, 2024.
