In order to assess the nitty-gritty of the transactions of the takeover and to opt for or opt out of the takeover deal, due diligence is carried out. As a practicing company secretary, what various aspects would you cons

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2021
In order to assess the nitty-gritty of the transactions of the takeover and to opt for or opt out of the takeover deal, due diligence is carried out. As a practicing company secretary, what various aspects would you consider while carrying out due diligence with regard to Management ?

Answer & Explanation:

Due diligence is a meaningful analysis of the collected information to arrive at some decision about the potential transaction. In order to carry out due diligence with regard to managerial aspect, I would consider the following matters: Company's HR Policies Assessment of Senior Level Management, resumes of key employees their qualifications and work exposures, previous background, etc. Summary Plan descriptions of qualified and non-qualified retirement plans Business Experience Union Contract, copies of collective bargaining agreements, description of all employees' problems within last five years including the alleged wrongful termination, harassment discrimination, etc. Strike History Labour Relations/Agreements, grievance procedures, labour disputes currently pending or settled within last five years. Workman's' compensation claim history / unemployment claim history Personnel Schemes, description of benefits of all employees' health and welfare insurance policies Profile of permanent employees Labour dues and settlement history Status of labour law compliances.

Topics: Corporate Restructuring

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