Reply To: Contingent Liabilities Due Diligence

#38185
Kai Jie Ang
Participant

I do agree that independent legal advice should be sought during the due diligence phase, especially if the contingent liabilities are not adequately disclosed in the annual report of the target company. The cost of seeking legal advice is certainly lower than that of bearing the repercussions arising from the improper disclosure of contingent liabilities (which may eventually result in hefty litigation costs). Therefore, it always crucial to do your research thoroughly before putting pen to paper.

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