Who may not be a statutory auditor (art. 286 LGS)
Article 286 of the General Companies Law lists the disqualifications from being a statutory auditor: persons disqualified from being directors, directors and employees of the company or its group, and their close relatives.
What article 286
Article 286 sets out the disqualifications and incompatibilities of the statutory auditor.
The following may not be statutory auditors: 1) those who are disqualified from being directors (art. 264); 2) directors, managers and employees of the same company or of another controlled or controlling company; 3) spouses, relatives by blood in a direct line, collateral relatives up to the fourth degree and relatives by marriage up to the second degree, of the directors and general managers.
Source: Law 19,550, art. 286 — InfoLEG (updated official text)
Commentary
It guarantees the auditor's independence: the auditor cannot oversee someone linked by employment, corporate or family ties. Without independence, oversight would be merely apparent.
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