Deposit refund
According to Wagner’s calculations, Signa Holding was over-indebted by 384 million euros at the end of 2021 and by 972 million euros at the end of 2022. According to the special administrator, the shareholder Signa Holding is said to have made a “prohibited return of deposits”, which BDO did not object to as such.
According to the law, Signa Holding would only have been entitled to a distribution of the balance sheet profits of subsidiaries. All other distributions are prohibited. However, Signa Holding is said to have received funds (credits, loans) from subsidiaries amounting to 410 million euros in 2021 and around 1.029 billion euros in 2022. This is likely to be the aforementioned prohibited return of deposits to the shareholder.
According to the special administrator, these debts of Signa Holding to its subsidiaries “were due immediately and could not be deferred or offset.” According to the lawsuit, BDO is liable for the damage resulting from the difference in assets between the time of the audit report of the 2021 balance sheet dated April 27, 2022 and the opening of insolvency proceedings on November 30, 2023.
Possible consequences
What consequences must BDO expect in the event of a possible conviction?
“The auditor is obliged to conduct a conscientious and impartial audit. If he intentionally or negligently violates this duty, he is obliged to compensate the company and, if an affiliated company has been harmed, also the latter for the resulting damage,” states the Austrian Commercial Code (UGB). Although Signa Holding reported total assets of 6.1 billion euros at the end of 2022, it is not considered a large company under the UGB due to its low turnover and few employees. According to the law, BDO is only liable for damages of two million euros. Even if Signa Holding had made billions in sales, the auditors’ possible liability for damages would be limited to a maximum of 12 million euros under the law.
