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.

Company Law
Legal Requirements for Allotment of Shares in Malaysia

M&A transactions often involve allotment of shares in a company. Understanding the legal requirements for allotment of shares is essential to ensure compliance and avoid potential disputes over the validity of allotment of shares. The following are the key steps for allotment of shares under the Companies Act 2016 (CA) …

Due Diligence
The Mind That Never Rests

What does a corporate transactional lawyer do while waiting in the lift, at a restaurant counter or for coffee at a café? I read the licenses on display, check their validity periods, and scan for conditions. When I see certificates on the walls, I can’t help but examine them too. …

Lawyering
Learning to Appreciate the Small Things

One afternoon, I walked into the office, feeling unsettled after a discussion with another adviser. As I took my laptop from my bag and placed it on my desk, something caught my eye-a small handmade paper box, stapled at the sides, neatly holding some binder clips. The day before, I …