Legal due diligence: Spotting errors with common sense

Due Diligence

In legal due diligence exercise, it is easy to get lost in all the details, especially when there are urgent deadlines and voluminous documents to be reviewed.

Some errors in legal due diligence reports are obvious when you take a step back and apply common sense.

It doesn’t make sense that:

• The date of a supplemental/amendment agreement is before the date of the main agreement.

• The date of certificate of registration of charge is before the date of creation of the charge. Under the Companies Act 2016 of Malaysia, a company must register a charge created over its property after the charge is created. The Registrar of Companies will then issue a certificate of registration of charge.

#malaysiancorporatelawyer
#legalduediligence

This post was first posted on Linkedin on 20 May 2022.

Linkedin Post
Conversation on W&I Insurance in M&A Transactions

As an M&A lawyer with a keen interest in the nuances of the M&A field, I’ve observed that warranty and indemnity insurance (W&I) is not that common in M&A transactions in Malaysia, as far as I know. Therefore, when I saw Martijn de Lange of BMS Group commenting about W&I …

Company Law
Indirect Substantial Shareholder

A person can be a substantial shareholder in a company without directly holding any shares in that company. One of the challenges that often arises when I work on IPOs or other equity capital market exercises is the assessment of whether an individual holds an indirect substantial shareholding in a …

Company Law
Legal Requirements for Directors’ Fees and Benefits in Malaysia

One common issue I encounter in both M&A deals and IPO exercises relates to compliance with the legal requirements for the payment of director’s fees and benefits. Additionally, the legal obligations regarding director’s service contracts should not be overlooked. Here are the key points: Constitution 1. If a company, whether public …