On August 14 th., 2024, Decree 730/2024 (the “Decree”) was published in the Official Gazette, which introduces amendments to the regulation of Law No. 20,655 (the “Sports Law”). The purpose of the Decree is to expand the legal forms allowed for sports entities within the “Institutional System of Sports and Physical Activity”.
The main points of the Decree are:
- Term of Adaptation: as of August 15 th., 2024, associations, federations and confederations have a term of one year to modify their bylaws and adapt them, to allow the election of any legal form of sports organization. Specifically, the bylaws may not restrict, hinder or limit the rights of membership in an association based on the chosen legal form, provided that this form is permitted by the Sports Law.
- Right to Compete: Sports organizations may decide to change their legal form and have the right to continue to participate in competitions under the same conditions as they did under their previous legal structure.
- Transformation into a corporation: In order for a civil association to become a corporation, the favorable vote of two thirds of the associates attending the extraordinary assembly in which this decision is debated is required.
- Regulations for Corporations: Corporations with a sports corporate purpose must comply with the provisions of the General Corporations Law, with respect to the composition of their board of directors and the duration of their terms of office.
The Decree provides greater legal flexibility to sports organizations in Argentina and allows them to opt for corporate structures that better suit their needs without compromising their rights and competitive capabilities. The objective of the Decree is to ensure an orderly transition and protect the rights of organizations during this adaptation process, mitigating any possible resistance from associations, federations and confederations.
This regulation came into force on August 15 th., 2024.
