Important Documents in Legal Due Diligence
In the LDD process, there are several important documents that will be examined, namely:
Company Articles of Association Documents
The articles of association are a written provision that contains the powers and rights that can be exercised by the company's management. Generally, the document contains the company's internal basic regulations that are adapted to the Limited Liability Company Law.
As for the company's articles of association, they consist of the deed of establishment, company structure, list of shareholders, minutes of the shareholders' meeting, and proof of paid-up capital from the company.
Company Asset Documents
These documents consist of land certificates, vehicle ownership documents, documents of share ownership in other companies, and other documents as proof of company assets.
Agreement Documents with Third Parties
These documents consist of debt agreements, agreements with shareholders, and cooperation agreements.
Company Licensing and Approval Documents
These documents consist of a company domicile certificate, company registration certificate, and permits granted by the government.
Company Personnel Problem Documents
These documents consist of company regulations, foreign worker permits, employee social security, employee wages, and work agreements.
Company Insurance Documents
These documents consist of building (property) insurance policies, cooperative policies, stored fund policies, vehicle policies, and so on.
Company Taxation Documents
These documents consist of the company's Taxpayer Identification Number (NPWP), Land and Building Tax (PBB), taxes payable, and so on.
Other Documents
This document contains information about the company's relationship with lawsuits and disputes inside or outside the court.
Stages Legal Due Diligence
There are 3 stages in the implementation of Legal Due Diligence (LDD), namely:
- Planning Stage
The implementation of LDD begins with a general meeting with company stakeholders to find out several things, starting from the objectives, types, to what results are expected from the LDD.
At this stage, a schedule and work plan will also be prepared during the LDD activity, as well as making a list of documents to be examined during Due Diligence and can be submitted in the form of a document request letter.
- Preparation Stage
This LDD stage is carried out by examining the documents that have been previously prepared by the company. These documents are checked for completeness and it is also possible to carry out examinations up to the court stage to find out the problems or disputes that occur in the company.
- Report Preparation Stage
When the examination of important and relevant documents has been completed with the aim of carrying out legal due diligence, then a lawyer has an obligation to provide a report of his findings to the client.
That is the explanation related to legal due diligence starting from the meaning, objectives, types, to the stages in the implementation of LDD.
Comments
0Share your perspective politely, stay relevant, and focus on the article. Comments appear after moderation.
Join the discussion
Write a clear, polite response that stays on topic.
No comments yet. Be the first to discuss.
Comments will appear after moderation.