Supervisory board replacing the statutory auditor (art. 283 LGS)
Article 283 of the General Companies Law allows dispensing with the statutory auditor when the bylaws set up a supervisory board, replacing it with an annual audit.
What article 283
Article 283 governs dispensing with the statutory auditor when a supervisory board exists.
When the bylaws organize a supervisory board, the company may dispense with the statutory auditor provided for in articles 284 and following. In that case, the statutory auditor shall be replaced by an annual audit, engaged by the supervisory board, whose report on the financial statements shall be submitted to the shareholders' meeting.
Source: Law 19,550, art. 283 — InfoLEG (updated official text)
Commentary
It offers an alternative control model: a supervisory board (composed of shareholders) plus an external audit, instead of a statutory auditor. It is uncommon, but valid for companies that prefer that governance scheme.
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