TABLE OF CONTENTS There is no doubt that the business environment requires that due diligence should be understood as a core feature of doing business in today's world. Whereas the impact of due diligence was originally felt by larger organisations, nowadays drivers such as supply chain pressures, reputation issues, regulatory and voluntary frameworks have meant that due diligence is a matter of concern to most organisations. This is especially true bearing in mind the interaction with risk management and corporate governance. As a result, the business environment demands due diligence as an ongoing tool to deal with both internal and external requirements.
It has been seen in CHAPTER 1 that internal pressures come about through the deals, transactions, joint relationships and operational issues of the business. In addition, it may be noted that the key external drivers are regulatory and reporting standards that affect stakeholder and insurer confidence. The issues and concerns that were once only the domain of large businesses have crept into that of small businesses and small and medium-sized enterprises (SMEs) as they deal with the implications of today's business environment and scrutiny of bureaucracy, regulation, customers and non-governmental organisations (NGOs) as well as the media. New business relationships are forcing improved standards on organisations of all sizes and indeed relationships can impact on the reputation of all those involved.
While a jurisdiction's company law governs companies incorporated in that jurisdiction, a jurisdiction's securities laws and regulations govern companies, investors and intermediaries involved in the buying or selling...
