Due diligence meeting(redirected from Due-Diligence Meetings)
Due diligence meeting
Due Diligence Meeting
An internal meeting held after the registration of a new security with the SEC but before the registration's effective date. Under the Securities Act of 1933, all accountants, counsel, underwriters, and managers can be held civilly liable for knowingly making false or misleading statements in the registration documents. In order to shield themselves from liability, representatives of the registrant conduct a meeting before the registration becomes effective to discuss and if necessary remedy any issues that may have arisen. This is considered a necessary part of due diligence prior to the issuance of a new security.