Liability of statutory auditors (art. 296 LGS)
Article 296 of the General Companies Law makes statutory auditors unlimitedly and jointly and severally liable for breaching their obligations; the shareholders' meeting that declares their liability removes them.
What article 296
Article 296 sets out the liability of statutory auditors.
Statutory auditors are unlimitedly and jointly and severally liable for breaching the obligations imposed on them by the law, the bylaws and the regulations. Their liability shall be enforced by decision of the shareholders' meeting. The decision declaring the liability entails the removal of the statutory auditor.
Source: Law 19,550, art. 296 — InfoLEG (updated official text)
Commentary
A statutory auditor who fails to oversee as required is liable for the damage, just like a manager. The shareholders' meeting that holds him liable also removes him. It is the counterpart of his role as guarantor of legality.
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