Conducting legal due diligence of an enterprise is a comprehensive check aimed at identifying and minimizing possible risks when concluding transactions, acquiring a business or investing. This publication will focus specifically on legal audit (due diligence) of an enterprise, and depending on the goals, other types of due diligence can be conducted. To effectively conduct such an audit, lawyers at Zilver will need the following information and documents about the enterprise:
- Constituent documents of the enterprise: registration code, charter, memorandum of association (if any), corporate agreement (if any), etc.
- Internal documentation: collective agreement (if any), policies, rules, regulations, instructions, etc.
- Documents confirming rights to property: title documents for real estate (purchase and sale agreements, leases, acceptance certificates, etc.), documents for movable property (vehicles, equipment, etc.), inventory lists of fixed assets.
- Contractual documentation: key contracts with counterparties (supplies, contracts, services, etc.), license agreements, lease agreements, loan agreements and pledge (mortgage) agreements, cooperation agreements, etc.
- Financial statements: balance sheet for the last 3 years, financial statements for the last 3 years, tax returns, auditor’s reports (if any), reconciliation statements, and other primary documentation.
- Personnel documentation: staffing schedule, employment contracts and job descriptions, civil contracts, payroll, etc. (list of documents for labor audit at the link).
- Intellectual property: certificates of registration of trademarks, patents, copyrights, licensing agreements for the use of intellectual property.
- Legal disputes and claims and information on current and completed legal proceedings, claims from counterparties or government agencies, claims sent to debtors.
- Licenses and permits: current licenses to carry out certain types of activities, permits and certificates required for the operation of the enterprise.
- Permitting documentation: licenses, certificates, etc.
- Industry compliance documents: fire safety, labor protection, etc.
- Other documents depending on the specifics of the enterprise .
Please note that this checklist is a general guide. Depending on the specifics of your enterprise and the objectives of due diligence, the list of required documents may be expanded or clarified.
Providing the above documents and information will allow the lawyers of the Zilver company to conduct a comprehensive analysis of the enterprise, identify potential risks and provide recommendations for their minimization, and evaluate the enterprise from a legal point of view.
For more information or consultation, you can contact us by phone: +38050 1409560 or send a request to e-mail: info@zilver.com.ua.
We also recommend that you read:
State Labor Inspection: Should I be allowed into the enterprise?
What to do when checked by the State Labor Service?
Sample AI Policy (AI Act) for a company
Procedure for challenging the results of tax audits
Legal aspects of selling a website
Legal terms for placing an application on the App Store or Google Play
How to Tokenize Assets and Business? Legal Aspects
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