Due diligence meeting

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Due diligence meeting

Meeting legally required to be held by an underwriter to enable brokers to question a new issuer about an upcoming issue.

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.
References in periodicals archive ?
The 2019 ranking of the Forbes' Best-in-State Wealth Advisors(1) list was developed by SHOOK Research and is based on in-person and telephone due-diligence meetings to evaluate each advisor qualitatively and on a ranking algorithm that includes client retention, industry experience, review of compliance records, firm nominations, and quantitative criteria (including assets under management and revenue generated for their firms).
"We had between 30 and 40 due-diligence meetings with agency heads and sat regularly with the governor and the lieutenant governor to talk about choices that had to be made." Spending requests amounted to more than twice the $12 billion the plan calls for.
12: McClatchy execs attend due-diligence meetings in San Jose, and tell Knight Ridder the company intends to sell some papers.