INTRODUCTION
Organizations carrying out legal due diligence in Cameroon business transactions to ensure a proper background screening of the target company prior to business engagement. Assistance with legal due diligence in Cameroon commercial transactions is to reduce risk. Another importance of due diligence is when conducting business transactions, investments, or purchases of landed or commercial properties so as to ensure proper background investigation is done before payment.
This can be done by proper review, investigation, and carrying out a search on places, documents and interviewing employees and to ensure that all the liabilities related to the subject matter are discovered before completion and that the subject is beneficial.
CARRYING OUT LEGAL DUE DILIGENCE IN CAMEROON
carrying out legal due diligence in Cameroon means the process of investigating companies in advance of joint partnerships, sales, mergers, and acquisitions by gaining an understanding of the Company.
It involves a lot of obligations such as investigating the debts, liabilities, and assets of the company; investigating the tax returns and liabilities of the company; investigating and evaluating any pending lawsuit or potential lawsuit against the company.
Assisting with legal due diligence in Cameroon may also entail investigating the corporate legal status of a targeted company with the TPPRR. In this regard, a manual search, which will reveal the incorporation of the company, names of directors, names of shareholders, and whether any charges are registered on the company will be conducted on the targeted company at the TPPRR.
Generally, assisting with legal due diligence in Cameroon is to carry out a full assessment of all possible financial and legal risks in relation to assets, the company’s corporate status, intellectual property, contracts, land transactions, and the company’s employment in other to ensure the that any investment or purchase is beneficial to the investor and as such due diligence services are billable.
IMPORTANCE OF LEGAL DUE DILIGENCE IN CAMEROON
It is important for investors to conduct legal diligence in Cameroon before involving in import and export trade, mergers and acquisitions, contracts, investment takeovers, purchase of gold, mercury, metals, or other transactions with any company. The importance of due diligence in corporate transactions is:
- It helps assess the risk and provides solutions to minimize the risk and potential loss to investors, creditors, and shareholders.
- Assistance with legal due diligence in Cameroon in mergers can aid in monitoring a target company, its financial position, corporate status, leases, warranties, contracts, compensations, tax liabilities, and long-term agreements and ascertain its debts.
- carrying out legal due diligence in Cameroon helps prevent investors from incurring liabilities and checks the prospect of solvency.
- Professional advice on legal due diligence is used to learn about a target company for the purpose of becoming acquainted with the company for ease of effective communication and understanding.
- The importance of due diligence in business transactions enables both the investor’s lawyer and the target company’s lawyer to render accurate legal opinions to avoid online fraudsters.
PROFESSIONAL ADVICE ON LEGAL DUE DILIGENCE IN CAMEROON
Legal due diligence in Cameroon in business transactions involves but is not limited to the following steps:
- Brief a due diligence law firm like ours.
- Reviewing documents of a target company in Cameroon
- Carrying out interviews of individuals with knowledge of the company.
- Carrying out necessary searches /due diligence at appropriate regulatory agencies
- Due diligence by the direct visitation
- Scrutinizing public records of the targeted entity
- Conducting media and internet searches on the targeted entity
- Evaluating any ongoing lawsuit against the company
Conclusion
The idea behind the carrying out legal due diligence in Cameroon business transactions, especially in matters relating to the supply of gold /mining, contracts, imports, and export, is to understand if there will be any future legal problems as a result of such transactions. Diligence in business transactions is essential as it helps to identify various obstacles, risks and potential solutions. Over the years, we have represented many entities in due diligence and safe them from making terrible business decisions.
Article by Barr. Mafany Victor Ngando
‘‘The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.’’