Term and removal of the statutory auditor (art. 287 LGS)
Article 287 of the General Companies Law limits the statutory auditor's term to three fiscal years (renewable) and makes the auditor removable by the shareholders' meeting, unless 5% of the capital objects.
What article 287
Article 287 governs the term and removability of the office of statutory auditor.
The bylaws shall specify the term for which they are elected, which may not exceed three fiscal years; they shall remain in office until replaced and may be re-elected. Their appointment may be revoked only by the shareholders' meeting, which may do so without cause, provided that five percent (5%) of the corporate capital does not object.
Source: Law 19,550, art. 287 — InfoLEG (updated official text)
Commentary
It protects the auditor's independence from the majority: the auditor cannot be removed if 5% of the capital objects, preventing removal for exercising oversight properly. The limited term ensures periodic renewal.
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