SIMPLIFYING MATTERS

x
Info career

info centre

MAGNUSSON ADVISES ON A MATTER OF AN AUDITOR'S LIABILITY

2018-01-16

Attorneys Maria Nisell and Per Magnusson from Magnusson counseled in a case concerning an auditor’s liability towards board members in a joint-stock company.

The question was if a careless audit can lead to that board members who have asserted joint liability according to the rules on lack of capital in Chapter 25 of the Swedish Companies Act may be compensated by the auditor according to the provision in Chapter 29, Section 2.

The Supreme Court found that the question regarding liability is determined by whom the applicable liability rule is intended to protect. The Supreme Court emphasized that the protection purpose of the rules on auditing of the company’s bookkeeping does not include the board members whom are responsible for it. The board can thus not blame the auditor for actions they are responsible for. Therefore, the auditor was not liable. The Supreme Court consequently affirmed the judgment of the Court of Appeal.

It is positive that the Supreme Court clarifies the boundaries for how far the liability according to Chapter 29, Section 2 of the Swedish Companies Act stretches, says Maria Nisell and Per Magnusson. It would be unreasonable if board members could lay their own responsibility on the auditor in such a way as attempted in this case. After many years of dispute, it is gratifying that the case had the desired outcome, says the two counsels.

Other News

  • MAGNUSSON ORGANIZED ITS ANNUAL SLUSH SIDE EVENT AT HARD ROCK CAFÉ IN HELSINKI ON 3 DEC 2018

    We had 15 guest speakers, who had the opportunity to present their companies and innovative business ideas.

    read more
  • MAGNUSSON LITHUANIA ADDING NEW PARTNERS TO THE TEAM

    As Magnusson Lithuania marks its 20th anniversary this year, we close this period with professional achievements of our team members: associates Rūta Didikė and Eligijus Vinckus become partners of the firm.

    read more
  • THE CRYPTO CURRENCY OPERATIONS ARE BECOMING MORE RESTRICTED

    The Ministry of Finance of Republic of Estonia is planning to take the draft legislation to the Estonian Government to tighten up the acceptance of crypto currency licenses.

    read more
  • MAGNUSSON PARTNER VILLE SALONEN NAMED BOARD MEMBER OF FAF

    The Football Association of Finland (FAF) has appointed Ville Salonen as a member to its Board.

    read more
more NEWS