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Due diligence checklist for organisations in South Africa

Due diligence checklist for organisations in South Africa

Legal and Regulatory Documents:

  • Company registration documents (e.g., Certificate of Incorporation, Memorandum of Incorporation, Articles of Association)
  • Shareholder agreements or partnership agreements (if applicable)
  • Directors’ resolutions and board meeting minutes
  • Company constitution or bylaws
  • Business licenses and permits


Financial Documents:

  • Audited financial statements for the past three years
  • Management accounts and financial projections
  • Tax compliance certificates and tax returns
  • Bank statements and evidence of financial stability
  • Insurance policies (if applicable)
  • Loan agreements or financing arrangements


Legal and Compliance Records:

  • Contracts and agreements with suppliers, customers, and partners
  • Intellectual property registrations or patents
  • Trademarks, copyrights, or other relevant intellectual property documentation
  • Regulatory compliance certificates (e.g., industry-specific permits or certifications)
  • Any pending litigation or legal disputes involving the organisation


Corporate Governance and Internal Controls:

  • Board and committee meeting minutes
  • Organisational policies and procedures (e.g., code of conduct, conflict of interest policy)
  • Whistleblower or reporting mechanisms
  • Anti-money laundering and know-your-customer policies
  • Risk Management Framework and Assessments


Employee and Human Resources Documentation:

  • Employee contracts and offer letters
  • Employee handbook or policies
  • Payroll records and employee benefit programs
  • Proof of compliance with labour laws and regulations
  • Health and safety policies and records


Environmental and Sustainability Documents:

  • Environmental impact assessments and permits (if applicable)
  • Sustainability reports or certifications
  • Waste management plans or records
  • Energy efficiency initiatives or certificates
  • Social responsibility or community engagement programs


Data Protection and Privacy:

  • Data protection policies and procedures
  • Consent forms and records for data processing
  • Data breach response plan
  • Records of data protection impact assessments (if applicable)
  • Compliance with relevant data protection laws (e.g., the Protection of Personal Information Act)


Due Diligence on Donors and Partners:

  • Identification documents of donors or partners (e.g., ID cards, passports, company registration documents)
  • Proof of address for donors or partners
  • Bank reference letters or statements
  • Background checks on individuals or entities (where appropriate)


Note: The specific documents required may vary depending on the nature and size of the organisation, industry sector, and regulatory requirements. It is recommended to seek legal advice and tailor the checklist to meet the organisation’s specific needs and compliance obligations.


Please note that this checklist serves as a general guideline and does not constitute legal advice. Organisations should consult legal professionals to ensure compliance with South African due diligence laws and regulations.