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New Rules for Auditors of Limited Liability & Joint Stock Companies


According to a new decree recently introduced in Italy (Legge di Stabilit? 2012), joint stock companies (SpA) and limited liability companies (Srl) which adopt the ordinary governance system, will have to change their Board of Auditors, currently formed by a plurality of auditors, appointed to monitor the compliance with the correct management principles and with law and by-laws, with a sole auditor. Taxand Italy looks at which companies will be affected by the decree.

This new rule is applicable to:

  • all limited liability companies (Srl) currently obliged to appoint the Board of Auditors
  • joint stock companies (SpA) with a turnover or a net equity lower than Euro 1 million

Joint stock companies with a turnover and a net equity higher than Euro 1 million will continue to appoint a Board of Auditors, composed by three effective members and two deputies.


Taxand's Take

These new rules will come in to force from 1 January 2012. As of today it is not clear if the Board of Auditors' appointment will terminate automatically from that date or if the companies have to wait for the legal term fixed by the quota holder's meeting to substitute the Board of Auditors with a sole auditor.

Your Taxand contacts for further queries are:
Guido Arie Petraroli
T. +39 02 7260591

Norberto Mariani
T. +39 02 7260591

Taxand's Take Author