Due diligence is the systematic enquiry buyers and their advisers make to ensure timely, sufficient and accurate disclosure of all material information in a corporate transaction. Regulators place heavy reliance on professional findings when approving corporate proposals, and under the Capital Markets and Services Act 2007, section 250 provides a statutory due diligence defence against liability for misstatements in an information memorandum or prospectus. The discipline is old; the tools are new.
Amongst the various aspects of due diligence, the most consequential recent change is the elevation of beneficial ownership verification into a fixed line item in every acquisition, following the Companies (Amendment) Act 2024. Sections 60A and 60B of the Companies Act 2016 now require identification of every natural person holding 20% or more of shares or voting rights, or exercising ultimate effective control. For limited liability partnerships, beneficial ownership reporting has been mandatory since 31 January 2025.
This issue covers what due diligence still means in 2026, where AI genuinely adds value, and where human judgment must remain accountable for the output.