The protection of creditors in capital reduction

Abstract

From the articles 218 and 219 of the General Law of Business Corporations two interpretations can be identified. In one hand, these rules would prevent the capital reduction itself from taking place until the 30-day period has elapsed, while on the other hand, they would only prevent the company from leaving the resources equivalent to the amount of the capital reduction while the period expires. This article tries to resolve the dilemma between both interpretations. In addition, the author recognizes the need for an adequate protection of creditors.