General Inspection of Justice General Resolution No. 21/2020: Savings Companies for Advances in Installment Payments and Closed System Savings Companies – Modality by draw.
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Company Law Department Report | General Inspection of Justice General Resolution No. 21/2020: Savings Companies for Advances in Installment Payments and Closed System Savings Companies – Modality by draw
Dear All,
General Inspection of Justice (IGJ, for its initials in Spanish) General Resolution 21/2020 was published in the Official Gazette on May 5th, laying down the modality by draw for Savings Companies for Advances in Installment Payments and Closed System Savings Companies. Some of the proceedings stated in the resolution abovementioned are the following:
Savings companies with closed circles of groups for the direct allocation of movable property of services and destined to the acquisition of real property or its expansion or renovation; operating through savings plans, general conditions, and contracts approved by the IGJ; shall be allowed, without prior authorization from said authority, to perform monthly draws as from the date of coming into force of the present resolution, for as long as the emergency compulsory preventive social distancing may last.
To that end, the companies shall use a mechanic or electronic drawing machine, or any other mechanic or electronic suitable means, which ensures participation of all subscribers in condition to participate in the draw. If another means were to be used for the draw, the companies shall previously submit an actuarial report, signed by its issuer, and electronically legalized by the corresponding professional association.
The adjudication act shall be performed without the public presence and with a notary public present, in the case that there is no restriction for it at the time of the draw.
Managers shall provide live transmission of the adjudication, which shall be publicly advertised through the web page.
The resolution herein mentioned shall come into force upon the date of its publication.
Should you require any further information on this matter, please do not hesitate to contact us.
Sincerely,
Fernanda Mierez
Miguel M. Silveyra
Miguel C. Remmer