Legal Due Diligence (LDD)

The analysis of legal aspects of commercial activity (Legal Due Diligence) is necessary for merger or acquisition and is to control company of standard act in the sphere of civil, labor and business law and consist of the following:

― examination of the legality of constituent instruments and forming authorized fund of the company;

― examination of the legality of scheme of management of the company. Estimation the legality of appointment and scope of authority of controlling bodies (committee of directors and etc);

― examination of the legal “purity” of rights to the property of acquired company; ― examination of the registration of ownership to the real estate and exposure of existing charges;

― legal examination of the ownership of share holding of other companies;

― estimation of the risks impugnment of rights to the property. Examination business rights and obligations with the object of existing and validity;

― estimation of different risks of the dispute of concluded contracts (large bargain and bargain with interest, absence of authority to sign and etc.);

― legal estimation of main licenses and risks of their revocation and temporary suspension;

― legal examination of company’s objects of intellectual property (patent, trade mark and etc.) and risks of dispute and recall of registration;

― analysis of risks in case of application to acquired company or to the bargain of acquisition itself to antimonopoly laws. Estimation of prospects of approval of bargain from the direction of antimonopoly authorities;

― general estimation of efficacy of the system of contractual work with the main partners with the object of their legal “purity” and recognizing main legal risks;

― analysis of the state and prospects of main existing and future court examination.