On August 3rd, 2020 General Resolution of the Public Registry of Commerce of the City of Buenos Aires (Inspección General de Justicia, “IGJ”) Nbr. 34/2020 (the “Resolution 34/20) was published in the Official Gazzette, effective as of the day of its publication. The aforementioned resolution establishes certain requirements for specific companies registered with the IGJ that they shall comply with when appointing their Board of Directors and/or Supervisory Committee. In particular, Resolution 34/20 establishes a structure that respects the gender diversity, the Board of Directors and/or Supervisory Committee shall be composed of the same number of female members and male members. When the number of members to be appointed is an odd number, the referred bodies must be integrated mixed, with at least one third of female members.
Resolution 34/20 reaches the following companies included on Section 299 of the Argentine Corporations Act:
- Partnerships in process of being incorporated.
- Simple Partnerships that request their registration.
- Foundations with a temporary and elective integration Board of Directors.
- State Companies
- Corporations in process of being incorporated that (i) have a mixed economy system or are included on Chapter IV of the Argentine Corporations Act, (ii) carry out capitalization operations, savings or in any way require funds or securities from the public with promises of future benefits, (iii) exploit concessions or utilities and (iv) are holding and/or affiliate companies of another company to which it applies to one of the preceding paragraphs.
On the other hand, corporations that (i) are listed on the stock exchange, (ii) have a share capital greater than $ 50,000,000 (argentine pesos fifty million), and (iii) are single shareholder companies, altough are also included on Section 299 of the Argentine Corporations Act, are excluded of the requirements mentioned on Resolution 34/20.
The provisions mentioned above shall apply to all future appointments of the Board of Directors and/or Supervisory Committee if applicable, since this Resolution 34/20 came into force.