Memo · Capital Markets & Securities — ECM/DCM and Disclosure
Due diligence planning memorandum and verification protocol for a prospectus
Memo establishing the due diligence committee, scope, materiality thresholds, inquiry process, expert and director sign-offs, and verification protocol for an Australian prospectus, so the s 731 and s 733 defences can be evidenced.
- Kind
- Memo. An internal or advice memo.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 5 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use at the start of an IPO or other offer under a prospectus. Adapt for offer information statements or PDS offers. Not needed for offers that do not need disclosure, such as most placements, although a lighter process may still be prudent.
How AI may be used
AI may help map due diligence questions to answers and sources and list unverified statements. Each verification is confirmed by a person who has read the source, and AI use is recorded so the process can be evidenced.
AI may
- Map DDC inquiry questions to management answers and source documents
- List statements in the draft prospectus that do not yet have a verification note
- Track sign-offs and expert consents
AI must not
- Must not set materiality thresholds or decide that an inquiry is complete
- Must not mark a statement verified
- Must not process pre-announcement offer information in a tool not approved for inside information
The lawyer checks
- DDC composition, scope and thresholds approved by the board
- Process records show reasonable inquiries for each area of the prospectus
- Any AI-assisted step is described in the DDC report with its verification
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Capital Markets & Securities — ECM/DCM and Disclosure
- Continuous disclosure policy and disclosure committee charter
- Trading halt request letter to ASX
- Checklist for AI-assisted verification of offer and disclosure documents
- Securities trading policy (closed periods, clearance, exceptions)
- Review checklist for AI-related statements in disclosure documents and annual reports ('AI washing')
All precedents for Capital Markets & Securities — ECM/DCM and Disclosure · Tasks and AI use in this area