Legal Due Diligence

Legal Due Diligence

What is legal due diligence of documents?

Legal due diligence is a specific sequence of steps for checking the conformity of documents, both as a whole and as individual parts, to the current legislation, as well as identifying the potential risks associated with existing or future litigation.

Legal due diligence in respect of documents is the procedure for checking whether documents comply with current legislation and assessing the prospects of future or present litigation.

If conducted properly it will spare the client the undesirable consequences typically associated with litigation.

When court proceedings are already in progress, the attention of experienced lawyers can help prevent the client exacerbating his situation and making rash decisions.  In scenarios such as this, it is crucial to have an objective for the end of proceedings.

During the proceedings themselves it is equally important to know the correct procedures and when to adopt them.  For example, one must know what motion to file, when to provide basic and additional evidence, how to appeal against acts of the court and exactly how to justify one’s arguments. 

In the event of litigation it is also important to safeguard the reputation of the company, as well as one’s own immediate and personal interests.  Reputation after all is the fundamental basis for business development.

If a company anticipates financial difficulties which may hinder the performance of its obligations it is advisable to forewarn the lender and propose an adjustment of obligations.  This establishes the good faith of a partner and will often make the creditor inclined to enter into a constructive discussion of the matter.  In today’s climate financial problems are understood to be objective.  Partners will, more often than not, be willing to co-operate in the interests of solving a common problem.  If a debtor warns a creditor of further losses, this will prevent the latter entering into transactions with 3rd parties on the basis of funds expected from the former.

In the event that a company or its director faces the prospect of administrative liability, legal due diligence can be of use in predicting potential sanctions, identifying ways of reducing risks or even striking out the case altogether. 

In respect of criminal proceedings one must evaluate the risks of their initiation, to work out the timing and procedure for investigating them and determine whether there are possible grounds for their termination.

For the above reasons a timely request for high-quality legal assistance will help your business avoid losing its good name and reputation in the eyes of your partners.

GRATA after conducting a prior analysis provides a legal opinion which is intended to serve as a basis for the development of strategic schemes and the means of resolving the situation.

GRATA is thus able to provide services in the above areas and is happy to put its experience and knowledge at the disposal of our clients in order to devise effective solutions for whatever problems they may face.

Recent Experience:

• advising a group of gold-mining companies on the possibilities of judicial and pre-trial dispute settlement;
• advising a Kazakh airline company on the possibilities of judicial and pre-trial settlement of potential disputes;
• advising Kazakh credit companies commencing proceedings with a view to protecting their reputation and claiming compensation for damages business reputation, and compensation of damages;
• advising a major foreign financial company on the possibility of judicial settlement of the dispute between the shareholders, and on the possibility of a court decision being taken in  the Republic of Kazakhstan;
• advising a major foreign investor on the possibility of a collateral arrest release, where the arrest was demanded by public authorities for ensuring the legal process;
• advising a major Kazakh bank about the possibility of a collateral arrest release, where the arrest was imposed by public authorities for ensuring the legal process;
• advising a foreign bank on the possibilities of a pre-trial settlement of potential disputes under  repo transactions;
• advising one of the creditors of the largest Kazakh bank about possible risks regarding the initiation of criminal proceedings against the former management of the Kazakh bank;
• conducting due diligence reports on the purchase and sale of telecommunication companies;
• conducting due diligence reports on the purchase and sale of oil companies.

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