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Due diligence committee
Practical Law ANZ Glossary w-010-8359 (Approx. 3 pages)
Glossary
Due diligence committee
A committee convened for the purposes of carrying out a due diligence investigation in connection with an initial public offering (IPO) of securities. The committee usually consists of:
- The legal advisers to the offer.
- Representatives of any underwriter or lead manager.
- The independent accountant advising on the listing.
- Key members of the company's senior management.
The committee will meet regularly throughout the course of the IPO. For standard form agendas and minutes, see Standard documents:
The roles and responsibilities of each member of the committee, as well as its processes, will be set out in the due diligence planning memorandum (DDPM) adopted in relation to the offer. For a standard form DDPM, see Standard document, Due diligence planning memorandum: initial public offering due diligence.
The committee will typically:
- Review information provided to it by each of its members, including detailed legal and financial due diligence reports prepared by the legal advisors and independent accountant respectively.
- Consider various drafts of the offer document and a verification report.
- Make a report and recommendation to the board of the offeror as to whether it should approve the offer document and proceed with the offer. For a standard form report, see Standard document, Due diligence planning memorandum: initial public offering due diligence.