Mandatory capital reduction and dissolution for loss of capital in Argentina: emergency suspension
Recession, high inflation, currency devaluation and application of the accounting adjustment for inflation, among other causes, may provoke that many companies must expose on their balance sheets relations that make them be incurred in the causes of mandatory capital reduction (Section 206 of the General Companies Law N 19,550, the Ley General de Sociedades or LGS, as amended) or dissolution for loss of capital (Section 94, subsection 5, of the LGS).