The Executive Power of Argentina passed on May 22, 2001, a decree related to the Transparency and Better Practices in the Capital Markets (the "Decree") which introduces certain changes to the public offering regime in Argentina.
The main purpose of the Decree is to protect investors, to reduce the cost of capital by strengthening the legal and institutional framework of the capital markets and to grant more flexibility to the corporate structures, particularly to the sociedad anónima ("corporation"), in order to update the corporate structures to the modern mechanisms used in some of the more developed corporate systems.
The main measures introduced by the Decree are as follow:
- New concept of "negotiable value".
