13 Jan Argentina Power of Attorney POA
Argentina Power of Attorney POA
Argentina has a presidential system, checked by a bicameral Congress. The legislative branch of government (Congress), which consists of the House of Representatives and the Senate, enacts legislation. Legislation generally is proposed by the president.
Argentina is a member of the Mercosur (Southern Common Market) trade agreement, along with Brazil, Paraguay, Uruguay, and Venezuela. The preferential import tariffs within Mercosur countries vis-à-vis third parties have helped to boost trade between the two major partners, Argentina and Brazil. Most of Argentina’s exports are to Mercosur countries, followed by the EU, the US, and Asia. Argentina’s main imports are industrial inputs, capital goods, parts, and food.
The country is richly endowed with natural resources. The most important industries are those related to agribusiness, food and beverages, chemicals, petrochemicals, and motor vehicles. The government has created incentive regimes to develop other areas, such as software, biotechnology, biofuel production, and mining.
The government controls prices in some sectors, such as urban transport; local telephone services; electricity, water and gas distribution at the retail level; and tolls on highways and rivers.
The Transfer of Technology Law 22,426 governs agreements relating to the transfer, assignment or licensing of technology or trademarks. The law defines technology to include patents, industrial models and designs and any technical knowledge applicable to manufacturing a product or rendering a service.
Law 25,859, which covers patents, also protects a patent holder by preventing third parties from using the holder’s patented procedure. The law validates international research and technical examinations made by certain international patent offices. Patents are granted for 20 years from the date of publication. The owner of a patent has the right to prevent third parties from using, offering or selling the patent without his/her consent.
The registry of trademarks at the National Trademark Registry Agency establishes the right to the exclusive use or exploitation of a trademark for 10 years, which may be renewed indefinitely for further periods of 10 years.
Article 17 of the Constitution protects intellectual property. Law 11,723 on Intellectual Property provides copyright protection. Infringement of industrial property rights is a criminal offense. A foreign licensor or its local licensee may institute legal procedures.
The currency in Argentina is the Argentine Peso (ARS).
Banking and financing
Banks increasingly are funding their operations through deposit-taking, rather than through other financing options. Most deposits are short-term (the minimum term generally is 30 days).
Argentina’s financial center is the capital, Buenos Aires.
Foreign companies may invest in Argentina on an equal footing with domestic firms without prior government approval. Foreign investors have the same rights and obligations as domestic investors and may enter any area of economic activity without a local partner. Approval or special procedures generally are not required. However, if the investment of a foreign company consists of an equity holding in an Argentine company, the foreign company must be registered with the Superintendency of Corporations in the jurisdiction in which the Argentine company is located. The government also has adopted a tougher stance toward some new foreign companies, for example, by requiring that such firms provide information to the government about their shareholders.
Tax incentives are available for certain activities, such as mining, forestry, software production, biotechnology, and biofuel production. There is a tax-free zone (Tierra del Fuego) with special incentives for certain activities.
Argentina operates a complex foreign exchange control regime. The transfer of funds into and out of the country should abide by the Central Bank’s regulations. Restrictions are imposed on inbound and outbound investment and on interest and other amounts payable in foreign exchange. It may be necessary to provide documentation or obtain authorization from the central bank, and 30% of certain inbound loans may be frozen for one year as a legal reserve deposit (i.e. a portion of the incoming funds will be held in a non-remunerated bank account). Loans granted for investments in fixed assets and inventory are exempt from the reserve requirements (although minimum terms are required).
It is necessary to pay dividends prior to approval out of profits from an audited financial statement. Capital contributions can enter Argentina without restriction, but may not be repatriated without central bank authorization. Prior authorization from the tax authorities is necessary to purchase foreign currency.
On the other hand, the Central Bank should authorize certain payments. For example, professional services, computing services, royalties, and trademarks, among others, for foreign-related entities. Also, entities in tax haven jurisdictions (according to income tax regulations) or bank accounts from tax havens. Payments of less than USD 100,000 per year in the aggregate, however, are outside the scope of this rule.
Last, it is necessary to provide documentation in relation to the payment to the bank making the transfer.
Types of shares:
As a matter of fact, the shares represent the capital stock. Shares must be nominative and nonendorsable. Actually, certificates may represent these shares. Additionally, the issuance and ownership of noncertificate shares arise from records in the company’s share registry book.
Unless all of the capital stock is represented at a shareholder meeting and all resolutions obtained a unanimous vote, a meeting should be called by means of publication of a notice. In other words, it should appear in the official gazette five days before the meeting. Nevertheless, in specific cases, it should be in a national newspaper at least 10 days (but no more than 30 days) before the meeting.
Additionally, shareholders’ meetings may be ordinary or extraordinary.
However, shareholders representing the majority of the voting shares must attend ordinary meetings. In fact, decisions depend on the majority of the votes of those in attendance. An initial extraordinary meeting must have a quorum of 60% of the votes of those present; a second meeting requires a quorum of 30%.
Indeed, there is no requirement for labor to have representation on the board or in the management.