The statutory auditor is liable together with the directors (art. 297 LGS)
Article 297 of the General Companies Law makes the statutory auditor jointly and severally liable with the directors where the damage would not have occurred had he acted in accordance with his duties.
What article 297
Article 297 sets out the joint and several liability of the statutory auditor with the directors.
They are also jointly and severally liable with the directors for the latter's acts and omissions where the damage would not have occurred had they acted in accordance with what is established in the law, the bylaws, the regulations or the resolutions of the shareholders' meeting.
Source: Law 19,550, art. 297 — InfoLEG (updated official text)
Commentary
The statutory auditor is not liable only for his own conduct: if diligent oversight would have prevented the damage caused by the directors, he is jointly and severally liable with them. It is the flip side of his role as guarantor of legality.
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