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Ada Pertanyaan? Hubungi Kami Christina Desy
Entering a corporate transaction without taking necessary precautions is the same as buying a “pig in a poke” (beli kucing dalam karung). Doing background checks on a target company or for high value transactions has become more common in Indonesia, both for financial and legal reasons.
Coined by lawyers as “legal due diligence” (“LDD”), LDD generally refers to a series of examinations on corporate and transaction related documents to see check compliance with prevailing regulations laws by the counterparty. Some LDD even involves site visits and interviewing relevant parties.
The LDD process unfortunately is not covered by a codified law, meaning parties must look into a web of regulations to see check for legal risks before executing a transaction. Some LDD, depending on the industry, requires more detailed and complex examination than others as is the case for the mining sector.
Recognizing the need for background information, the public at large as well as corporations, can benefit from knowing what LDD is about and what it revolves around before they commence it. In that vein, this week’s ILD will discuss LDD, focusing on the mining sector. This topic has been chosen as transactions in this industry are often complex and risky, justifying the need for parties to conduct an LDD to uncover potential business and legal risks.
To this end, this week’s ILD will elaborate on the following matters:
a. LDD process covering LDD preparation, commencement, and the LDD report; and
b. LDD checklist discussing the types of documents that are commonly reviewed in a mining sector transactions.
Entering a corporate transaction without taking necessary precautions is the same as buying a “pig in a poke” (beli kucing dalam karung). Doing background checks on a target company or for high value transactions has become more common in Indonesia, both for financial and legal reasons.
Coined by lawyers as “legal due diligence” (“LDD”), LDD generally refers to a series of examinations on corporate and transaction related documents to see check compliance with prevailing regulations laws by the counterparty. Some LDD even involves site visits and interviewing relevant parties.
The LDD process unfortunately is not covered by a codified law, meaning parties must look into a web of regulations to see check for legal risks before executing a transaction. Some LDD, depending on the industry, requires more detailed and complex examination than others as is the case for the mining sector.
Recognizing the need for background information, the public at large as well as corporations, can benefit from knowing what LDD is about and what it revolves around before they commence it. In that vein, this week’s ILD will discuss LDD, focusing on the mining sector. This topic has been chosen as transactions in this industry are often complex and risky, justifying the need for parties to conduct an LDD to uncover potential business and legal risks.
To this end, this week’s ILD will elaborate on the following matters:
a. LDD process covering LDD preparation, commencement, and the LDD report; and
b. LDD checklist discussing the types of documents that are commonly reviewed in a mining sector transactions.
Christina Desy
Entering a corporate transaction without taking necessary precautions is the same as buying a “pig in a poke” (beli kucing dalam karung). Doing background checks on a target company or for high value transactions has become more common in Indonesia, both for financial and legal reasons.
Coined by lawyers as “legal due diligence” (“LDD”), LDD generally refers to a series of examinations on corporate and transaction related documents to see check compliance with prevailing regulations laws by the counterparty. Some LDD even involves site visits and interviewing relevant parties.
The LDD process unfortunately is not covered by a codified law, meaning parties must look into a web of regulations to see check for legal risks before executing a transaction. Some LDD, depending on the industry, requires more detailed and complex examination than others as is the case for the mining sector.
Recognizing the need for background information, the public at large as well as corporations, can benefit from knowing what LDD is about and what it revolves around before they commence it. In that vein, this week’s ILD will discuss LDD, focusing on the mining sector. This topic has been chosen as transactions in this industry are often complex and risky, justifying the need for parties to conduct an LDD to uncover potential business and legal risks.
To this end, this week’s ILD will elaborate on the following matters:
a. LDD process covering LDD preparation, commencement, and the LDD report; and
b. LDD checklist discussing the types of documents that are commonly reviewed in a mining sector transactions.
Entering a corporate transaction without taking necessary precautions is the same as buying a “pig in a poke” (beli kucing dalam karung). Doing background checks on a target company or for high value transactions has become more common in Indonesia, both for financial and legal reasons.
Coined by lawyers as “legal due diligence” (“LDD”), LDD generally refers to a series of examinations on corporate and transaction related documents to see check compliance with prevailing regulations laws by the counterparty. Some LDD even involves site visits and interviewing relevant parties.
The LDD process unfortunately is not covered by a codified law, meaning parties must look into a web of regulations to see check for legal risks before executing a transaction. Some LDD, depending on the industry, requires more detailed and complex examination than others as is the case for the mining sector.
Recognizing the need for background information, the public at large as well as corporations, can benefit from knowing what LDD is about and what it revolves around before they commence it. In that vein, this week’s ILD will discuss LDD, focusing on the mining sector. This topic has been chosen as transactions in this industry are often complex and risky, justifying the need for parties to conduct an LDD to uncover potential business and legal risks.
To this end, this week’s ILD will elaborate on the following matters:
a. LDD process covering LDD preparation, commencement, and the LDD report; and
b. LDD checklist discussing the types of documents that are commonly reviewed in a mining sector transactions.