Legal audit is a comprehensive examination of the legal status of a company or its individual components, conducted by qualified lawyers. The purpose of the legal audit is to identify and eliminate legal risks, as well as to increase the efficiency and competitiveness of the business.
A legal audit can be conducted both as part of the planned monitoring of the legal status of a company and with the aim of preparing for the reorganization, merger, acquisition, sale, liquidation, or bankruptcy of the company.
Legality of the business entity's activities, compliance of its charter documents with legislative norms and requirements of regulatory bodies.
The presence and authenticity of all necessary contracts, licenses, permits, certificates, registration certificates, etc., that regulate the legal status of the business entity and its relationships with counterparties, partners, state authorities, and other legal entities.
Identification and assessment of risks that may arise in connection with the violation or non-fulfillment of legal norms, agreements, obligations, or claims by third parties, as well as possible consequences of such risks for the financial condition and reputation of the business entity.
Development and proposal of measures for the prevention, minimization, or elimination of identified risks, as well as improving the legal support of the business entity's activities.
What does a legal audit consist of?
corporate structure;
financial condition and taxation;
real estate;
construction issues;
customs issues;
machinery, equipment, and trade assets;
intellectual property rights;
extraction and environmental protection;
labor issues and occupational safety;
contracts and their execution status;
legal proceedings.
A legal audit helps to prevent or minimize possible fines, sanctions, losses, conflicts, lawsuits, reputational risks, etc. A legal audit also contributes to the optimization of the company's legal regime, improvement of its competitiveness, and development.
Legal Audit: Stages
The main stages of a legal audit for a mining company include:
Analysis of documentation regulating the company's activities (documents such as charter, licenses, permits, contracts, etc.).
Checking the compliance of the company's activities with current legislation, regulatory acts, and industry standards, as well as identifying possible risks and violations.
Evaluation of the state of the company's assets and liabilities, including the legal status of land plots, real estate objects, equipment, ore reserves, and other resources.
Development of recommendations for eliminating identified deficiencies and improving the efficiency and safety of the company's operations.
The main stages of a legal audit for a mining company include:
Evaluation of the legal status and risks associated with the company's activities in mining minerals, and its compliance with the current legislation of Ukraine and international standards.
Identification of possible violations and conflicts of interest that could lead to the cancellation or restriction of the special permit for subsoil use, fines, lawsuits, or other negative consequences for the parties to the agreement.
Development of recommendations for eliminating identified deficiencies and improving the legal protection of the mining company and its assets.
Conducting negotiations with government authorities, public organizations, local communities, and other interested parties regarding obtaining the necessary permits, licenses, certificates, and other documents confirming the right to use subsoil resources.
Ensuring transparency and a high level of trust between the parties to the agreement, which contributes to the successful completion of the process of buying and selling the special permit for subsoil use.
The Geological Investment Group team will assist you successfully navigate the legal audit procedure of your company.
