CHILE Law and Practice Contributed by: Franco Acchiardo, Francisca Castro, Hugo Prieto and Manuel Diumenjo, Clyde & Co Chile
Independence of the Auditor The external auditor must be independent from the company, with no financial, business, or per - sonal relationships that could impair its objectiv - ity and impartiality. Registration and Compliance The auditor must be registered with the CMF and perform audits in accordance with IFRS and auditing standards recognised in Chile. Scope of Work The auditor is responsible for a thorough review of the company’s financial statements, verifying regulatory compliance, assessing internal con - trols and risk management systems, and detect - ing any irregularities or mistakes. Audit Report and Disclosure Upon completion, the auditor issues an inde - pendent audit report detailing their findings and certifying the accuracy and fairness of the finan - cial statements. This report must be approved by the company’s board of directors and share - holders and subsequently filed with the CMF. 7.2 Requirements for Directors Concerning Management Risk and Internal Controls In Chile, directors have specific responsibilities regarding risk management and internal con - trols, particularly in publicly traded companies. The key requirements include: Fiduciary Responsibility Law No. 18,046 establishes that directors must act in good faith and in the best interest of the corporation. Directors have a duty of care and duty of loyalty, meaning they must ensure the corporation operates ethically, responsibly, and transparently. They must avoid conflicts of inter - est and prioritise shareholder interests, ensur -
in the judicial archive, also accessible upon request. Online Incorporation Companies may alternatively be created through the Registro de Empresas y Sociedades ( www. tuempresaenundia.c). This system allows standardised electronic by-laws and immediate registration and tax ID assignment (RUT). While faster, the RES system is only available for companies using pre-approved templates and lacks notarial oversight. Additional Filings All companies must register with the SII to obtain a tax ID (RUT) and begin operations. Publicly traded companies must also register with the CMF, which monitors their corporate structure, financial reporting, and governance practices. 7. Audit, Risk and Internal Controls 7.1 Appointment of External Auditors In Chile, publicly traded companies - including listed corporations, financial institutions, and other regulated entities - are required to appoint an external auditor to review and certify their financial statements during the annual ordinary shareholders meeting. The appointment and relationship between the company and the external auditor are subject to the following key requirements:
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