Legal audit (due diligence) consists of actions aimed at the legal treatment of the client’s activity in order to define the risks and defend the interests of the client itself as well as those of its founders and managers.
Due diligence procedure usually includes the following:
• Checking up the client’s constituent documents and the management resolutions based on them;
• Analysis of the corporate relations at the client;
• Analysis of the client’s contracts and agreements;
• Checking up the documents establishing the client’s rights to real estate, land lots, intellectual property objects, etc.;
• Analysis of disputes, including the litigation the client is involved in;
• Staff registering.
Due diligence enables the client, among others, to estimate the investment appeal of the client and its corporate rights as purchase-and-sale objects, prevent the cancellation of the client’s state registration or the nullification of the constituent documents, prevent the nullification of the deals or their consideration as unsigned, prevent penalty sanctions for the client (including the administrative ones).