![]() ![]() In legal and business use, the term was soon used for the process itself instead of how it was to be performed, so that the original expressions such as "exercise due diligence in investigating" and "investigation carried out with due diligence" were soon shortened to "due diligence investigation" and finally "due diligence".Īs long as broker-dealers exercised "due diligence" (required carefulness) in their investigation into the company whose equity they were selling, and as long as they disclosed to the investor what they found, they would not be found liable for non-disclosure of information that was not discovered in the process of that investigation. The defense at Section 11, referred to later in legal usage as the "due diligence" defense, could be used by broker-dealers when accused of inadequate disclosure to investors of material information with respect to the purchase of securities. Under Section 11b3, a person could avoid liability for an untrue statement of a material fact if they had, "after reasonable investigation, reasonable ground to believe and did believe, at the time", the truth of the statement. It became a specialized legal term and later a common business term due to the United States’ Securities Act of 1933, where the process is called "reasonable investigation". The term "due diligence" can be read as "required carefulness" or "reasonable care" in general usage, and has been used in the literal sense of "requisite effort" since at least the mid- fifteenth century. The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate on the decision at hand and all its costs, benefits, and risks. A common example of due diligence is the process through which a potential acquirer evaluates a target company or its assets in advance of a merger or acquisition. It may also offer a defence against legal action. Société à responsabilité limitée (SARL)ĭue diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.ĭue diligence can be a legal obligation, but the term more commonly applies to voluntary investigations.Gesellschaft mit beschränkter Haftung (GmbH).Limited liability limited partnership (LLLP).Scottish charitable incorporated organisation (SCIO).Charitable incorporated organisation (England and Wales) (CIO).These examples are programmatically compiled from various online sources to illustrate current usage of the word 'noted.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Bob Goldsborough, Chicago Tribune, See More Perkins, who was chairman and CEO of grocer Jewel Companies for a decade. Robert Barnes, Anchorage Daily News, In its early years, it was owned by noted grain broker Edwin Taylor Maynard, who died in 1953, and it later was owned for more than 35 years by Donald S. Beth Wood, San Diego Union-Tribune, There were no noted dissents to the decision not to review the law. ![]() Dave McIntyre, Washington Post, The noted choir will perform the world premiere of Amy Gordon‘s work on Friday at First Unitarian Church Since its founding in 2009, the vibrant San Diego choral group Sacra/Profana has championed living composers. Eplunus Colvin, Arkansas Online, 2 June 2023 Bertani is a noted producer of amarone, the rich, powerful red of Veneto in northern Italy. Nick Scott, Robb Report, 3 June 2023 All of the noted invoices were sent to the attention of Taggart, who was the executive director of Urban Renewal during that time period. Gary Baum, The Hollywood Reporter, 9 June 2023 Macaluso was a noted driver, who even won major rally events in the 1970s. Leo Barraclough, Variety, 20 June 2023 The company had previously made public broader renovation plans (designed by James Corner, the noted architect behind the High Line in Manhattan and Tongva Park in Santa Monica) for its nearly 400-acre property, including improved landscaping and hardscaping at its western edge. Recent Examples on the Web Marcus is a noted basketball coach, whose career prospects are hampered by his own irascibility, stubbornness and lack of empathy. ![]()
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