Irrevocable Capital Contributions

Originally published October 2004

In recent months the Argentine Inspectorate of Corporations has continued to issue general and particular resolutions that affect companies incorporated and domiciled in the city of Buenos Aires. Other institutions have also issued resolutions that affect companies.

The Federation of Certified Public Accountants in Argentina issued Technical Resolution 17 in December 2000, becoming effective as of 2003, by which irrevocable capital contributions made by shareholders to their companies must:

• be duly transferred to the recipient company;
• have the purpose of subscribing shares to be issued by the company in the future;
• be accompanied by an agreement between the shareholder and the company, stating the terms and conditions for the conversion of the capital contribution into effective capital; and