Due Diligence Guidelines –
19.1 Recommended Steps
19.1.1 The sponsor should understand from lawyers in the host country whether there are any mandatory insurance requirements which apply to all companies operating in that country and whether there are additional insurance requirements for companies operating specifically in the mining/petroleum industry.
19.1.2 The sponsor should request from management information on the insurance policies taken out by the Mineral Company and each of its operating subsidiaries and discuss the claims history. The sponsor should, with the benefit of legal advice, review the scope and term of such policies and identify whether all insurance requirements under the local laws and regulations have been met.
HKCFEF Limited and the contributing law firms, accountants and sponsors are not offering these due diligence guidelines as legal, financial or professional advice or services and they should not be relied upon as such. These due diligence guidelines should not be used as a sole basis for any decision, action or inaction and are not meant to serve as a substitute for the advice of qualified professionals. See here for the full terms and conditions.