Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Raffles Place, a financial hub located in the Downtown Core and Central Area of Singapore, is known for its strict adherence to legal frameworks, including due diligence laws. Due diligence in Singapore refers to the process of research and analysis that an individual or company undertakes before signing a contract, making a financial investment, merger or acquisition. This process aims to identify any potential issues or liabilities before making a commitment, to avoid any possible legal or financial complications that could arise post-deal.
Dedicated due diligence lawyers are needed when conducting transactions involving real estate, company shares or assets, business partnerships, or investments. They ensure everything is in order, such as reviewing contracts, investigating the financial health and reputation of entities involved. Lawyers can meticulously consider the risks, interpret complex legal documents, and help you comprehend the potential implications and liabilities. In situations with cross-border transactions, having a lawyer becomes paramount due to the different sets of laws and regulations in different countries.
The key aspect of due diligence in Singapore is based on the principle of 'caveat emptor', or 'buyer beware'. It is the responsibility of the buyer to check the goods before purchase. Due diligence is not written as a specific law or regulation, rather it is a practice incorporated into various sectors like corporate law, securities law, and financial institutions. Regulations may vary depending on the market in which a company operates, its size, and complexity of transactions. Lawyers use principles from the Companies Act, the Securities and Futures Act, and common law cases to assist in conducting due diligence.
The timeline can vary greatly depending on the complexity of the deal, but it typically ranges from a few weeks to several months.
While it's technically possible, it's strongly advised to engage a lawyer as they can navigate the complexities and potential pitfalls of the process, particularly in cross-border dealings.
Failing to properly conduct due diligence could lead to financial losses, potential litigation, and damage to the reputation of all parties involved.
While not all businesses may undergo due diligence, it is strongly recommended, particularly when making acquisitions, mergers or investments.
Depending on the specifics of the deal, local laws including the Companies Act and the Securities and Futures Act may impact the due diligence process in Raffles Place.
The Monetary Authority of Singapore (MAS) provides resources and guides for financial due diligence. The Accounting and Corporate Regulatory Authority (ACRA) is a governmental body that regulates business entities and provides necessary information about companies in Singapore.
If you need legal assistance in due diligence, start by contacting a reputable law firm specializing in due diligence in Raffles Place. Prepare a brief of your needs and ensure you have all the necessary documents ready for review. Remember, due diligence is a proactive measure to protect your interests, and professional legal service is invaluable in this process.
