Legal Statutory Audits

The Memorandum of Association can lay down that the company must have a Supervisory Board, having to follow the law regarding such matter and as far as share companies are concerned.

The companies that do not have a Supervisory Board must appoint a Statutory Auditor (ROC*) in order to perform the legal audit, provided that two of the three limits indicated below are exceeded during two consecutive years:

a) Total of balance: 1.500. 000 €;

b) Total of net sales and other proceeds: 3. 000. 000 €;

c) Average number of employees under contract during the financial year: 50

The appointment of the ROC is no more needed when the company have a Supervisory Board or if two of the three requirements set down in the previous paragraph are not applied during two consecutive years.

It is incumbent on partners to deliberate the appointment of the ROC. Lack of such appointment implies the application of articles 416th to 418th.

The incompatibilities set down for the Supervisory Board are imposable to the ROC.

The legislation regarding the examination and the report of the ROC - and as far as share companies are concerned - is applied, depending if they have or not a Supervisory Board.

The total amounts and the figure mentioned in the above table may be altered by order of the Department of Finances and Justice.

Article 262nd of the Business Companies Code

ROC*: Revisor Oficial de Contas (Statutory Auditor)

Ordem dos Revisores Oficiais de Contas.

This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.